Exercise 20-3 Barnes Company reports the following operating results for the month of August: sales 310,000 (units 5,000); variable costs $214,000; and fixed costs $71,000. 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 $L 2. Reduce variable costs to 57% of sales. Net income s 3. Reduce fixed costs by $24,000. Net income $ Which course of action will produce the highest net income