LLV Incorporated originally forecasted the following financial data for next year: sales = $1,000, cost of goods sold = $675, and LLV Incorporated originally forecasted the following financial data for next year: sales = $1,000, cost of goods sold = $675, and interest expense = $90. The firm believes that COGS will always be 67.5 percent of sales. Due to increased global demand, the firm is now projecting that sales will be 20 percent higher than the original forecast. What is the additional net income (as compared to the original forecast) the firm can expect assuming a 35 percent tax rate?

Multiple Choice $195.00 $59.45 $74.00 $42.25