Requirement 2. Determine which alternative Thompson Engine should select to achieve its net income objective. Show your calculations. Evaluate each of the alternatives presented by the management committee, begin with alternative a. Alternative Alternative Alternative 3. b. c. Revenues $10,430,000 $9,106,000 $9,975,000 Variable costs 3,400,000 2,012,500 3,600,000 Contribution margin 7,030,000 7,093,500 6,375,000 Fixed costs 5,560,000 5,560,000 5,282,000 Operating income 1,470,000 1,533,500 1,093,000 Income taxes 588,000 613,400 437,200 Net income $882,000 $920,100 $655,800 To achieve its net income objective, Thompson Engine Company should select alternative b. This alternative results in the highest net income and is the only alternative that equals or exceeds the company's net income objective of $900,000. P3-48 (book/static) Zahner Corporation manufactures housewares products that are sold through a network of external sales agents. The agents are paid a commission of 20% of revenues. Zahner is