Vaughn Company reports the following operating results for the month of February: sales $852,000 (units 14,200 ); variable costs $421,740; and fixed costs $192,500. Management is considering the following independent courses of action to increase net income 1. Increase selling price by 2.7% with no change in total variable costs or units sold. 2. Reduce variable costs to 45.90% of sales. (a) 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.) Compute the net income to be earned under each alternative. (Round per unit calculations to 2 decimal places, eg. 15.25 and final answers to 0 decimal ploces, eg. 125) Which course of action will produce the highest net income? will produce the highest net income