USKimmel, Accounting, 6eHelp | System AnnouncementsCALCULATORPRINTER VERSION1 BACKESBarnes Company reports the following operating results for the month of August: sales $300,000 (units 5,000); variable costs $225,000; and fixed costs $71,400.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 incomethedy2. Reduce variable costs to 56% of sales.Net income3. Reduce fixed costs by $24,000.xNet incomeWhich course of action will produce the highest net income? :…….Click if you would like to Show Work for this question: Open Show WorkLINK TO TEXTQuestion Attempts: 2 of 5 usedSAVE FOR LATERSUBMIT ANS55. ..WP
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