Barnes Company reports the following operating results for the month of August: sales $325,000(units 5,000); variable costs $218,000; and fixed costs $70,000. Management is considering the following independent courses of action to increase net income.

Compute the net income to be earned under each alternative.

1.Increase selling price by 10% with no change in total variable costs or sales volume.

Net income$

2.Reduce variable costs to57% of sales.

Net income$

3.Reduce fixed costs by $22,000.

Net income$