Wildhorse Company reports the following operating results for the month of August: sales $382,500 (5,100 units), variable costs $253,000, and fixed costs $97,000. Management is considering the following independent courses of action to increase net income 1. Increase the unit selling price by 12% with no change in total variable costs, fixed costs, or units sold. 2. Reduce variable costs to 58% 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 +A $ 2. Net income $ Which course of action will produce the higher net income?