Pharoah Company reports the following operating results for the month of August: sales $400,000 (5,000 units), variable costs $256,000, and fixed costs $91,000. Management is considering the following independent courses of action to increase net income. 1. Increase the unit selling price by 15% with no change in total variable costs, fixed costs, or units sold. 2. Reduce variable costs to 57% of sales while holding fixed costs, quantity, and unit selling price constant. Compute the net income to be earned under each alternative. 1. Net income $ 2. Net income $ Which course of action will produce the higher net income? Attempts: 0 of 5 used Using multiple attempts will impact your score. 20% score reduction after attempt 4