Barnes Company reports the following operating results for the month of August: sales $315,000 (units 5,000): variable costs $219,000; and fixed costs $71,600. Management is considering the following independent courses of action to increase net income. Compute the net income to be earned under each alternative. I. Increase selling price by 10% with no change in total variable costs or sales volume. Net income each 2. Reduce variable costs to 60% of sales. Net income 3. Reduce fixed costs by $20,000. Net income s Which course of action will produce the highest net income