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Fanny Brice, owner of Funny Girl Comics, has sales revenue of $200,000, earnings before interest and taxes of $95,000, and net income of $30,000 this

Fanny Brice, owner of Funny Girl Comics, has sales revenue of $200,000, earnings before interest and taxes of $95,000, and net income of $30,000 this year. She is expecting sales to increase to $225,000 next year. The degree of operating leverage is 1.35 and the degree of financial leverage is relatively low at 1.09.

  1. Ms. Brice is considering a price increase. This would mean the percentage change in sales revenue between this year and next year would be 20 percent. If this is true, what net income (in dollars) can she expect for next year?

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