Barnes Company reports the following operating results for the month of August:sales $325,000 (units 5,000); variable costs $210,000; and fixed costs $75,000.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 sales volume.

2.Reduce variable costs to 58% of sales.

3.Reduce fixed costs by $15,000.

What is the net income to be earned under each alternative.Which course of action will produce the highest net income?