Sunland Company reports the following operating results for the month of February: sales $966,000 (units 16,100); variable costs $502,320; and fixed costs $191,800. 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 48.60% 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 0 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. Alternative #1 Alternative #2