Lee Industries provides the following figures for
the current year:
Sales $100,000
Cost of good sold $50,000
Depreciation $15,000
Other expenses $5,000
Net earnings $30,000
What will next year's profit be if a 5% increase
in sales is forecasted? (No additional equipment
is required to be purchased due to an increase
in sales. Assume cost of goods sold and other
expenses also increase by 5%.)