Current Attempt in Progress

Cullumber Company reports the following operating results for the month of August: sales $$357,000($units $5,100),$ variable costs

$$259,000,$ and fixed costs $$99,000.$ 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 $66\%$ of sales.

Compute the net income to be earned under each alternative.

Net Income $

Net Income $

Which course of action will produce the higher net income?