Adam Granger operates a kiosk in downtown Chicago, at which he sells one style of baseball hat. He buys the hats from a supplier for $39 and sells them for $45. Adams current breakeven point is 22,800 hats per year.

-Adam has decided to increase his sales price to $46 to offset the suppliers price increase. He believes that the increase will result in a 5% reduction from last years sales volume. What is Adams expected net income, assuming a 30% tax rate?