Please help!

Company reports the following operating results for the month of August: sales $343,000(units4,900), variable costs $261,000, and fixed costs $93,000. Management is considering the following independent courses of action to increase net income.

1.Increase selling price by14% with no change in total variable costs or units sold.

2.Reduce variable costs to58% of sales.

Compute the net income to be earned under each alternative.(Round intermediate calculations to 2 decimal places e.g. 2.25 and final answer to 0 decimal places, e.g. 12,125.)

1.Net Income$

2.Net Income$

Which course of action will produce the higher net income?