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Income Statement ERS Inc. maintains and repairs office equipment. ERS had an average of 10,000 shares of common stock outstanding for the year. The following

Income Statement

ERS Inc. maintains and repairs office equipment. ERS had an average of 10,000 shares of common stock outstanding for the year. The following income statement account balances are available for ERS at the end of 2019.

Advertising expense $24,050
Depreciation expense (on service van) 16,240
Income taxes expense 15,150
Interest expense 10,100
Rent expense 58,400
Insurance expense 11,900
Salaries expense (for administrative personnel) 195,600
Service revenue 933,800
Supplies expense 66,400
Utilities expense 26,100
Wages expense (for service technicians) 448,300

If ERS is able to increase its service revenue by $100,000, what should be the effect on future income?

If ERS had an incremental increase in revenue of $100,000, based on the net profit margin computed, what is the additional potential profit?

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