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From the income statement below, what happens to Gross profit of $10,500 if income taxes decrease from 25% to 10%? Income Statement $15,000 Net Sales

From the income statement below, what happens to Gross profit of $10,500 if income taxes decrease from 25% to 10%?

Income Statement

$15,000 Net Sales

$ 4,500 Cost of Goods Sold

$10,500 Gross Profit

$ 3,500 Operating Expense

$ 7,000 Net Income Before Tax

$ X,XXX Income Tax @ 25%

$ X,XXX Net Income (Loss)

Increase

Decrease

Stays the same

Increase first and then decrease

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