David Davis operates a kiosk in downtown Chicago, at which he sells one style of baseball hat. He buys the hats from a supplier for $20 and sells them for $25. David's current breakeven point is 14,200 hats per year. David has decided to increase his sales price to $26 to offset the supplier's price increase. He believes that the increase will result in a 5% reduction from last year's sales volume. What is David's expected net income, assuming a 30% tax rate? Net income $ David Davis operates a kiosk in downtown Chicago, at which he sells one style of baseball hat. He buys the hats from a supplier for $20 and sells them for $25. David's current breakeven point is 14,200 hats per year. David has decided to increase his sales price to $26 to offset the supplier's price increase. He believes that the increase will result in a 5% reduction from last year's sales volume. What is David's expected net income, assuming a 30% tax rate? Net income $