please help with b

Sheffield Company reports the following operating results for the month of February: sales $960,000 (units 16,000 ): variable costs $13,600; and fixed costs $199,700. Management is considering the following independent courses of action to increase net income. 1. Increase selling price by 2.5% with no change in total variable costs or units sold. 2. Reduce variable costs to 49.70% of sales. (a) Your answer is correct. Compute the net income to be earned under each alternative. (Round per unit calculations to 2 decimal places, es. 15.25 and final answers to 0 decimal places, es. 125) Which course of action will produce the highest net income? will produce the highest net income