Barnes Company reports the following operating results for the month of August: sales $315,000 (units 5,000); variable costs $218,000; and fixed costs $70,000. 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 60% of sales. Net Incomes 3. Reduce fixed costs by $23,000. Net Income $ Which course of action will produce the highest net income