Kamili Company reported the following income statement items for 20X1: Sales: $100,000 Net Income (after income tax): $13,000 Operating Income: $54,000 Gross Profit: $75,000 Additional data available to the management of Kamili Company indicate that Cost of Goods Sold included $11,500 in fixed costs (plus some amount of variable cost). In addition, Selling and Administrative Expense includes $11,970 in fixed costs (plus some amount of variable cost). Kamili's income tax rate is 40%. Assume that the sales amount were to grow to $131,000. Also assume that this sales increase can be accomplished with no increase in total assets and then no change in total financing. What is Net Income (after income tax) under the assumption of Sales Revenue of $131,000. Hint: In order to answer this question, you need to calculate what Interest Expense and Income Tax Expense are when sales are $100,000. If the Sales Revenue amgynt changes to $131,000, then Income Tax Expense will probably change (as income before income taxes changes), but interest expense will NOT change (because total financing remains the same). O $27,409.42 $37.015.70 $14,682.37 $45,682.37 EastWest Company manufactures brooms. Walbert, a large retail merchandiser, wants to buy 409,500 brooms from East West Company for $10 each. The brooms would carry Walbert's name and would be sold in its stores. EastWest Company normally sells 468.000 brooms a year at $14 each. Its production capacity is a total of 563,000 units a year. Cost information is as follows: Production costs Variable production costs: $9 per unit Fixed manufacturing overhead: ($1.872,000 / 468,000 units) = $4 per unit Selling and administrative expenses Fixed: ($1,404,000 / 468,000 units) - $3 per unit Walbert has indicated that the company is not interested in signing a contract for fewer than 409,500 brooms. Total fixed costs will not change regardless of whether the Walbert order is accepted. By how much will EastWest Company's overall net income change if the Walbert order is accepted? O EastWest Company net income will DECREASE by $1,163,000 EastWest Company net income will INCREASE by $1,163.000 EastWest Company net income will INCREASE by $409,500 EastWest Company net income will DECREASE by $ 409,500