Barnes Company reports the following operating results for the month of August: sales $320,000 (units 5,000); variable costs $210,000; and fixed costs $71,000. 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 to 58% of sales. Net income $ 3. Reduce foxed costs by $23.000 Net Incomes Which course of action will produce the highest net income? e Textbook and Media Alternative 2 Alternative 3 Alternative 1