26) Randall's Bakery has sales of $42,000 and a net profit margin of 5.8 percent. The firm estimates that sales will increase by 4.5 percent next year and that all costs will vary in direct relationship to sales. What is the pro forma net income? A) $2,545.62 B) $2,326,38 C) $2,533.44 D) $2,557.80 E) $2,436.00 27) Shah Fabrication currently has $298,900 in sales and is operating at 86 percent of the firm's capacity. The dividend payout ratio is 40 percent and cost of goods sold is $211,300. If the firm were to operate at full capacity, what would sales be? A) $245,697.67 B) $208,534.88 C) $347,558.14 D) $211,300.00 E) $254,500.00 28) Cheng & Cronin Equipment has $878,000 in sales and $913,000 of total assets. The firm is operating at 93 percent of capacity. What is the capital intensity ratio at full capacity? A) .62 B) .88 C) 97 D) 1.03 E) 1.14