Exercise 19-3 Barnes Company reports the following operating results for the month of August: sales $300,000 (units 5,000); variable costs $217,000; 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. I. Increase selling price by 10% with no change in total variable costs or sales volume. Net income c 2, Reduce variable costs to 55% of sales. Net income 3. Reduce fixed costs by $18,000. Net income s Which course of action will produce the highest net income