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