The Parent Teacher Association (PTA) of Meadow High School is planning a fund-raising campaign. The PTA is considering the possibility of hiring Eric Martin, a world-renowned investment counselor, to address the public. Tickets would sell for $36 each. The school has agreed to let the PTA use Harville Auditorium at no cost. Mr. Martin is willing to accept one of two compensation arrangements. He will sign an agreement to receive a fixed fee of $13,000 regardless of the number of tickets sold. Alternatively, he will accept payment of $26 per ticket sold. In communities similar to that in which Meadow is located, Mr. Martin has drawn an audience of approximately 500 people. Required: Assume the PTA pays Mr. Martin a fixed fee of $13,000. Determine the amount of net income that the PTA will earn if ticket sales are 20 percent higher than expected. Calculate the percentage change in net income.