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Exercise 5-15 Your answer is partially correct. Try again. 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. 1. Increase selling price by 10% with no change in total variable costs or units sold. 2. Reduce variable costs to 66% of sales. Compute the net income to be earned under each alternative. 1. Net Income 11 4 1,840 2. Net Income 22,380 Alternative 1 A Which course of action will produce the higher net income