Barnes Company reports the following operating results for the month of August: sales $305,000 (units 5,000); variable costs $213,000; and fixed costs $71,700. Management is considering the following independent courses of action to increase net income. Compute the net income to be earned under each alternative.

Exercise 20-3 Barnes Company reports the following operating results for the month of August: sales $305,000 (units 5,000); variable costs $213,000; and fixed costs $71,700. 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 60% of sales. Net income 3. Reduce fixed costs by $22,000. Net income s Which course of action will produce the highest net income? LINK TO TEXT