Garfield Industries Is Expanding Its Operations Throughout the Southeast United

Multiple Choice

Garfield Industries is expanding its operations throughout the Southeast United States. Garfield anticipates that the expansion will increase sales by $1,000,000, and increase the costs of goods sold by $700,000. Depreciation expenses will rise by $50,000 and interest expense will increase by $150,000. 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?

A) No change.
B) $40,000 increase.
C) $60,000 increase.
D) $100,000 increase.
E) $180,000 increase.