- Your answer is partially correct. Wildhorse Company reports the following operating results for the month of August: sales $382,500 (units 5,100), variable costs $253,000, and fixed costs $97,000. Management is considering the following independent courses of action to increase net income. 1. Increase selling price by 12% with no change in total variable costs or units sold. 2. Reduce variable costs to 58% of sales. Compute the net income to be earned under each alternative. 1. Net Income S 778400 2. Net Income 701,350 Which course of action will produce the higher net income? Alternative 1 eTextbook and Media