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Annual data for a firm for this tax year are: Revenues: $45 million Operating & Maintenance Costs: $7 million Labor Costs: $15 million Overhead and

Annual data for a firm for this tax year are: Revenues: $45 million Operating & Maintenance Costs: $7 million Labor Costs: $15 million Overhead and Administrative Costs: $3 million Capital Asset Cost Basis: $25 million Depreciation Allowance: $8 million Next year the firm can increase revenue by 20% and all costs increase by 2%. If depreciation remains the same, what will be the change in the firms net income? 5.4 million 5.2 million 7.9 million 13.3 million

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