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The following question is based on the Pro-Forma Income Statement of Cinoflex, Inc. which are stated in millions of dollars. Item 2017 2018 2019 2020
The following question is based on the Pro-Forma Income Statement of Cinoflex, Inc. which are stated in millions of dollars.
Item | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 |
Sales | $75,000 | $88,538 | $103,234 | $119,777 | $138,149 | $158,526 |
Cost of Goods Sold | ($34,000) | ($40,467) | ($47,351) | ($55,279) | ($64,167) | ($74,119) |
Gross Profit | $41,000 | $48,071 | $55,883 | $64,498 | $73,982 | $84,407 |
Sales and Marketing Expense | ($11,250) | ($14,579) | ($18,582) | ($23,356) | ($27,630) | ($31,705) |
Administrative Expense | ($13,500) | ($13,254) | ($15,485) | ($16,769) | ($17,969) | ($20,608) |
EBITDA | $16,250 | $20,238 | $21,816 | $24,373 | $28,393 | $32,094 |
Depreciation | ($5,500) | ($5,450) | ($5,405) | ($6,865) | ($7,678) | ($7,710) |
Interest Expense | ($75) | ($6,800) | ($6,800) | ($6,800) | ($7,820) | ($8,160) |
Pre-Tax Income | $10,675 | $7,988 | $9,611 | $10,708 | $12,895 | $16,223 |
Income Tax | ($3,736) | ($2,796) | ($3,364) | ($3,748) | ($4,513) | ($5,678) |
Net Income | $6,939 | $5,192 | $6,247 | $6,960 | $8,382 | $10,545 |
If Cinoflex makes a commitment to reduce Sales, Marketing, and Administrative expenses by 10%, how much earnings could be increased in 2022?
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