Tutor, Incorporated (TI) provides instructional services to its customers. TI charges $250 per student. The Company expects to serve 750 students during the coming year. All of the Company's expenses are fixed. Total annual fixed costs are projected to be $85,000. If the estimated number of students increase by 20%, net income will increase by:

Note: Round your final answer to the nearest percent.

Multiple Choice

60%.

37%.

40%.

20%.