Question - Kamili Company reported the following income statement items for Year 1:
Sales: $100,00
Gross Profit: 45,000
Operating income: 15,00
Net income: 8,000
Additional data available to the management of Kamili Company indicate that cost of goods sold includes $25,000 in fixed costs. In addition, selling and administrative expense includes $20,000 in fixed costs. Note: Kamili Company has NO income taxes; Kamili Company is located ina country where the income tax rate is )%. What is the best estimate of what Kamili Company's NET INCOME would be if the Sales amount were to grow to $120,000?