CompuSweep is a computer maintenance company that services PCs with software or hardware issues. CompuSweep charges each customer a flat rate of $120 for the service, and only charges them the cost of parts if physical repairs are needed. Management wants to forecast revenue and income for the next month. Managers have accumulated the following information for the past 3 months (total costs excludes the cost of any parts ordered and charged to the customer):
January: 250 maintenance jobs performed, $18,000 total costs
February: 300 maintenance jobs performed, $20,000 total costs
March: 295 maintenance jobs performed, $20,500 total costs
CompuSweep's tax rate is 25%. Due to a special marketing campaign this month, management projects that sales will increase by 32% from March to April.
What is the expected after-tax net income for April? (Use the high-low method to determine variable and fixed costs. Do not round intermediate calculations. Round final answer to the nearest cent.)
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