Detroit Disk, Inc. is a retailer for digital video disks. The projected net income for the current year is $1,740,000 based on a sales volume of 230,000 video disks. Detroit Disk has been selling the disks for $18.00 each. The variable costs consist of the $6.00 unit purchase price of the disks and a handling cost of $2.00 per disk. Detroit Disks annual fixed costs are $560,000.

Management is planning for the coming year, when it expects that the unit purchase price of the video disks will increase 30 percent. (Ignore income taxes.)

What will be the companys net income for the current year if there is a 20 percent increase in projected unit sales volume

Net income