E6.3 Compute net income under different alternatives Barnes Company reports the following operating results for the month of August sales $325,000 (units 5,000), variable costs $210,000, and fixed costs $75,000. Management is considering the following independent courses of action to increase net income. a Increase selling price by 10% with no change in total variable costs or sales volume b. Reduce variable costs to 58% of sales. - C Reduce fixed costs by $15,000 Instructions Compute the net income to be earned under each independent alternative. Which course of action will produce the highest net income? NOTE: Enter a formula, a cell reference, or a value (if you are unable to reference a cell), into the yellow shaded input cells. a. Current selling price New selling price Total sales Less: variable costs Contribution margin Less: fixed costs Net income b. Total sales Less: variable costs Contribution margin Less: fixed costs Net income + C. Total sales Less: variable costs Contribution margin Less: fixed costs Net income