Jim is a florist who runs Bountiful Flower Shop as a sole owner. $$His typical monthly operating results include the following: sales revenue $$4,000,$ flower costs $$800,$ supplies $$300,$ labor costs $$600,$ utilities $$250,$ rent $$720,$ and other costs $$350.$Jim recently attended a trade show and was attracted by a national chain that offered him referral service, baskets, and new flower arrangements in exchange for a monthly licensing fee of $$1,000.$He figures that the additional business from referrals will increase his revenues by $40\%,$ flower materials, supplies, and labor costs by $45\%,$ utilities by $10\%,$ and other costs by $20\%.$Rent will not change as he would still use the same facility.