Problem Blago Wholesale Company began operations on January 1, 2017, and uses the average cost method in costing its inventory. Management is contemplating a change to the FIFO method in 2018 and is interested in determining how such a change will affect net income. Accordingly, the following information has been developed: 2017 2018 Average cost FIFO $150,000 160,000 255,000 270,000 Condensed income statements for Blago Wholesale appear below: 2017 2018 Cost of goods sold Gross profit 40.00 50.000 275000 Required: Based on this information, what would 2018 net income be after the change to the FIFO method? Ignore any income tax effects of this change in accounting method