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Sheridan Company reports the following operating results for the month of August: sales $$408,000(5,100$ units$),$ variable costs $$259,000,$ and fixed costs $$93,000.$ Management is considering the following independent courses of action to increase net income.

$1.$

Increase the unit selling price by $10\%$ with no change in total variable costs, fixed costs, or units sold.

$2.$

Reduce variable costs to $55\%$ of sales while holding fixed costs, quantity, and unit selling price constant.

Compute the net income to be earned under each alternative.

$1.$

Net income

$

enter the net income in dollars

$2.$

Net income

$

enter the net income in dollars

Which course of action will produce the higher net income?

select an option

Alternative $1$Alternative$2$