Management believes that sales will increase by 20% next year. Using the degree of combined leverage that you calculated previously, what will be the new net income before taxes?

Overboard Sporting Goods Income Statement For the Year Ended December 31, 2020 Sales (300,000 units) Variable costs Contribution margin Fixed costs Operating income (EBIT) Interest expense Earnings before taxes Income taxes Net income 6,000,000 3,600,000 2,400,000 1,680,000 720,000 210,000 510,000 127,500 382,500 $ Assume that interest is a fixed expense