Chester has a 4% increase in sales and a 6% increase in interest expense. Assuming everything else remains the same, what is their expected Net Profit?

Points: 52006 Capsim Management Simulations, Inc.

Chester has a 4% increase in sales and a 6% increase in interest expense. Assuming everything else remains the same, what is their expected Net Profit?

Select: 1

	$21,672
	$7,460
	$24,464
	$20,906

ncome Statement Survey	Andrews	Baldwin	Chester	Digby
Sales	$176,889	$136,710	$171,369	$148,204
Variable Costs (Labor, Material, Carry)	$115,239	$90,359	$114,474	$99,637
Contribution Margin	$61,650	$46,351	$56,895	$48,567
Depreciation	$8,819	$13,124	$8,117	$14,087
SGA (R&D, Promo, Sales, Admin)	$24,308	$17,326	$12,316	$13,662
Other (Fees, Writeoffs, TQM, Bonuses)	$515	$2,596	$7,220	$7,247
EBIT	$28,008	$13,305	$29,242	$13,572
Interest (Short term, Long term)	$2,882	$14,504	$6,565	$15,889
Taxes	$8,794	($420)	$7,937	($811)
Profit Sharing	$327	$0	$295	$0
Net Profit	$16,005	($779)	$14,445	($1,506)

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