b-1. Assume the firm hires Ms, Car, an efficiency expert, as a consuitant. She suggests that by increasing selling and administrative expenses to 14 percent of sales, sales can be increased to $1.560.100. The extra sales effort will also reduce cost of goods sold to 72 percent of sales. (There will be a larger markup in prices as a result of more aggressive selling.) Depreciation expense will remain at $19.000. However, more automobiles wil have to be cartied in Inventory to satisfy customers, and interest expense will.go up to $17,300. The firm's tax rate will remain at 30 percent. Compute revised eamings after taxes based on Ms. Carr's suggestions for Lemon Auto Wholesalers. (Round taxes and earnings after taxes to 1 decimol place.) b-2. Will her ideas increase or decrease profitability? Increase profitability Decrease profitability