Sheffield Company reports the following operating results for the month of February: sales $960,000 (units 16,000); variable costs $513,600; 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) Compute the net income to be earned under each alternative. (Round per unit calculations to 2 decimal places, e.g. 15.25 and final answers to O decimal places, e.g. 125.) Alternative #1 Alternative #2 Net Income $ $ Which course of action will produce the highest net income? will produce the highest net income.