Directions: In the question below is a statement by two courses of action numbered I and II. A course of action is a step or administrative decision to be taken for improvement, follow-up, or further action regarding the problem, policy, etc. Considering the information given in the passage to be true, decide which of the suggested courses of action logically follow(s) for pursuing.

Statement: 

The sale of its lipsticks has gone down considerably, causing great concern to XYZ cosmetic company.

Course of action:

I. The company should do a proper analysis to determine and examine the reasons for the drop in sales.

II. The price of the lipsticks should be reduced and the quality should be improved.