Barnes Company reports the following operating results for the month of August: sales $315,000 (units 5,000); variable costs $225,000; and fixed costs $71,100. Management is considering the following independent courses of action to increase net income. Must show work.

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.

2. Reduce variable costs to 56% of sales.

3. Reduce fixed costs by $21,000.