Kamili Company reported the following income statement items for $20$X$1$:

Sales: $$100,000$

Net Income $($after income tax$)$: $$17,000$

Operating Income: $$62,000$

Gross Profit: $$81,000$

Additional data available to the management of Kamili Company indicate that Cost of Goods Sold included

$$4,560$ in fixed costs $($plus some amount of variable cost$).$

In addition, Selling and Administrative Expense includes $$13,300$ in fixed costs $($plus some amount of variable

cost$).$ Kamili's income tax rate is $40\%.$

Assume that the sales amount were to grow to $$119,000.$ Also assume that this sales increase can be

accomplished with no increase in total assets and then no change in total financing.

What is Net Income $($after income tax$)$ under the assumption of Sales Revenue of $$119,000.$

Hint: In order to answer this question, you need to calculate what Interest Expense and Income Tax Expense are

when sales are $$100,000.$ If the Sales Revenue amount changes to $$119,000,$ then Income Tax Expense will

probably change $($as income before income taxes changes$),$ but interest expense will NOT change $($because total

financing remains the same$).$

$$24,506\mathrm{.}73$

$$26,104\mathrm{.}04$

$$32,173\mathrm{.}40$

$$43,506\mathrm{.}73$