b$-1.$ Assume the firm hires Ms$.$ Hood, an efficiency expert, as a consultant. She suggests that by increasing selling and administrative expenses to $15$ percent of sales, sales can be increased to $$1,450,600.$ The extra sales effort will also reduce cost of goods sold to $73$ percent of sales $($There will be a larger mark$-$up in prices as a result of more aggressive selling$).$ Amortization expense will remain at $$10,000.$ However, more automobiles will have to be carried in inventory to satisfy customers, and interest expense will go up to $$16,800.$ The firm's tax rate will remain at $30$ percent. Compute revised earnings after taxes based on Ms$.$ Hood's suggestions for Carr Auto Wholesalers. $($Input all answers as positive values. Round your intermediate calculations to the nearest whole dollars.$)$

CARR AUTO WHOLESALERS

Income Statement

For the Year Ended December $31,20$XX

Cost of goods sold

b$-2.$ Will her ideas increase or decrease profitability?