b-1. Assume the firm hires Ms. Hood, an efficiency expert, as a consultant. She suggests that by increasing selling and administrative expenses to 14 percent of sales, sales can be increased to 930,300. 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 $17,000. However, more automobiles will have to be carried in inventory to satisfy customers, and interest expense will go up to $15,600. The firm's tax rate will remain at 30 percent. Compute revised eamings after taxes based on Ms. Hood's suggestions for Carr Auto Wholesalers. (Input all answers as positive values.) CARR AUTO WHOLESALERS Income Statement For the Year Ended December 31, 2015 (Click to select) Cost of goods sold Interest expense Earnings after taxes Sales Selling and administrative expense Taxes Earnings before taxes Amortization expense Click to select) (Click to select) Click to select) b-2. Will her ideas increase or decrease profitability? Increase profitability 19