Crane Department Store is located in midtown Metropolis. During the past several years, net income has been declining because suburban shopping centers have been attracting business away from city areas. At the end of the company's fiscal year on November 30, 2022, these accounts appeared in its adjusted trial balance. Accounts Payable $ 73,200 Accounts Receivable 47,700 Accumulated Depreciation Equipment 190,400 Cash 22,400 Common Stock 98,000 Cost of Goods Sold 1,707,750 Freight-Out 18,230 Equipment 445,100 Depreciation Expense 38,900 Dividends 33,600 Gain on Disposal of Plant Assets 5,600 Income Tax Expense 28,000 Insurance Expense 25,200 Insurance Expense 25.200 Interest Expense 14,000 Inventory 72,900 Notes Payable 121,800 Prepaid Insurance 16,800 Advertising Expense 93,800 Rent Expense 95,200 Retained Earnings 39,300 Salaries and Wages Expense 332,220 Sales Revenue 2,531,000 Salaries and Wages Payable 16,800 Sales Returns and Allowances 56,000 Utilities Expense 28,300 Additional data: Notes payable are due in 2026. Prepare a multiple-step income statement. (List other revenues before other expenses.) CRANE DEPARTMENT STORE Income Statement $ : $ The vice president of marketing and the director of human resources have developed a proposal whereby the company would compensate the sales force on a strictly commission basis. Given the increased incentive, they expect net sales to increase by 16%. As a result, they estimate that gross profit will increase by $122,760 and expenses by $164,340. Compute the expected new net income. (Hint: You do not need to prepare an income statement.) Then, compute the revised profit margin and gross profit rate. Comment on the effect that this plan would have on net income and on the ratios, and evaluate the merit of this proposal. (Ignore income tax effects.) Revised net income $ Revised profit margin (Round to 1 decimal place, e.g. 15.2%) % Revised gross profit rate (Round to 1 decimal place, e.g. 15.2%) %