Barnes Company reports the following operating results for the month of August: sales $325,000 (units 5,000); varlable costs $218,000; and flxed costs $70,200. Management is considering the following independent courses of action to increase net income. Compute the net incorme 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 fixed costs by $20,000 Net income ? Which course of action will produce the highest net income