Deerfield Industries is expanding its operations throughout the Southeast United States. Deerfield anticipates that the expansion will increase sales by $1,200,000 and increase operating costs (excluding depreciation and amortization) by $800,000. Depreciation and amortization expenses will rise by $100,000, interest expense will increase by $150,000, and the company's tax rate will remain at 40 percent. If the company's forecast is correct, how much will net income increase or decrease, as a result of the expansion?

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The Answer of Deerfield Industries is expanding its operations throughout the Southeast United States. Deerfield anticipates that the expansion will increase sales by $1,200,000 and increase operating costs (excluding depreciation and amortization) by $800,000. Depreciation and amortization expenses will rise by $100,000, interest expense will increase by $150,000, and the company's tax rate will remain at 40 percent. If the company's forecast is correct, how much will net income increase or decrease, as a result of the expansion?

Deerfield Industries Is Expanding Its Operations Throughout the Southeast United