Mark operates a kiosk in downtown Chicago, at which he sells one style of baseball hat. He buys the hats from a supplier for $20 and sells them for $25. Marks current breakeven point is 16,600 hats per year.

Mark has decided to increase his sales price to $26 to offset the suppliers price increase. He believes that the increase will result in a 5% reduction from last years sales volume. What is Marks expected net income, assuming a 30% tax rate?