View Policies Current Attempt in Progress Ayayal Company reports the following operating results for the month of August: sales $392,700 (units 5,100), variable costs $245,000, and fixed costs $98,000. Management is considering the following independent courses of action to increase net income. Increase selling price by 14% with no change in total variable costs or units sold, Reduce variable costs to 59% of sales. 1. 2 Compute the net income to be earned under each alternative. (Round intermediate calculations to 2 decimal places eg. 225 and final answer to O decimal places, eg. 12,125.) 1 Net Income $ 2 Net Income $ Which course of action will produce the higher net income? Ayayai Company reports the following operating results for the month of August: sales $392,700 (units 5,100). variable costs $245,000, and fixed costs $98,000. Management is considering the following independent courses of action to increase net income. Increase selling price by 14% with no change in total variable costs or units sold. Reduce variable costs to 59% of sales. 1 2 Compute the net income to be earned under each alternative. (Round intermediate calculations to 2 decimal places eg, 2.25 and final answer to decimal places, eg, 12.125.) Net Income $ 2 Net Income $ Which course of action will produce the higher net income