Yams Company reports the following operating results for the month of August: sales $370,000 (units 5,000), variable costs $257,000, and fixed costs $95,000. Management is considering the following independent courses of action to increase net income.

1.		Increase selling price by 11% with no change in total variable costs or units sold.
2.		Reduce variable costs to 61% of sales.

Compute the net income to be earned under each alternative. (Round intermediate calculations to 2 decimal places e.g. 2.25 and final answer to 0 decimal places, e.g. 12,125.)