Bell Brothers has $3,700,000 in sales. Fixed costs are estimated to be $100,000 and variable costs are equal to 50.00% of sales. The company has $1,400,000 in debt outstanding at a before-tax cost of 12.00%. If Bell Brothers' sales were to increase by 20.00%, how much of a percentage increase would you expect in the company's net income? Do not round intermediate calculations.

a. 25.51%

b. 21.14%

c. 23.39%

d. 17.10%

e. 19.29%