Wildhorse Company reports the following operating results for the month of August: sales $441,000 (units 4,900), variable costs $261,000, and fixed costs $93,000. Management is considering the following independent courses of action to increase net income.

Increase selling price by 10% with no change in total variable costs or units sold.

Reduce variable costs to 58% of sales.

Compute the net income to be earned under each alternative.

1. Net Income $

2. Net Income $