Exercise 20-3 Barnes Company reports the following operating results for the month of August: sales $ f 5,000); variable costs $213,000; and fixed costs $71,700. Maniegement is considening the folloxing 305,000 (units 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 income $ 3. Reduce fixed costs by $22,000. Which course of action will produce the highest net income