The most recent financial statements for Moose Tours, Inc., follow. Sales for 2018 are projected to grow by 12 percent. Interest expense will remain constant; the tax rate and the dividend payout rate will also remain constant. Costs, other expenses, current assets, and accounts payable increase spontaneously with sales.

2018

Pro forma

Sales

$929,000

Costs

723,000

Other expenses

19,000

EBIT

$187,000

Interest expense

14,000

Taxable income

$173,000

Taxes

60,550

Net income

$112,450

Dividends

$33,735

Add. to retained earnings

78,715

Sales increase

12%

Operating capacity

100%

Tax rate

35%

1. Calculate EFN with 12% increase in sales and select the plug variable?