The vice president of marketing and the director of human resources have developed a proposal whereby the company would compensate the sales force on a strictly commission basis. Given the increased incentive, they expect net sales to increase by 16%. As a result, they estimate that gross profit will increase by $122,760 and expenses by $164,340. Compute the expected new net income. (Hint: You do not need to prepare an income statement.) Then, compute the revised profit margin and gross profit rate. Comment on the effect that this plan would have on net income and on the ratios, and evaluate the merit of this proposal. (Ignore income tax effects.) Revised net income Revised profit margin (Round to 1 decimal place, eg. 15.2\%) % Revised gross profit rate (Round to 1 decimal place, eg. 15.2\%) \%. Crane Department Store is located in midtown Metropolis. During the past several years, net income has been declining because suburban shopping centers have been attracting business away from city areas. At the end of the compony's fiscal year on November 30,2022 , these accounts appeared in its adjusted trial balance. Notes Payable 121,800 Prepaid Insurance 16,800 Advertising Expense 93,800 Rent Expense 95,200 Retained Earnings 39,300 Salaries and Wages Expense 332,220 Sales Revenue 2,531,000 Salaries and Wages Payable 16,800 Sales Returns and Allowances 56,000 Utilities Expense 28,300 The vice president of marketing and the director of human resources have developed a proposal whereby the company would compensate the sales force on a strictly commission basis. Given the increased incentive, they expect net sales to increase by 16%. As a result, they estimate that gross profit will increase by $122,760 and expenses by $164,340. Compute the expected new net income. (Hint: You do not need to prepare an income statement.) Then, compute the revised profit margin and gross profit rate. Comment on the effect that this plan would have on net income and on the ratios, and evaluate the merit of this proposal. (lgnore income tax effects) Revised net income Revised profit margin (Round to 1 decimal place, es. 15.296) % Revised gross profit rate (Round to 1 decimal place, es. 15.2\%) %