Directions: Use the information below to answer this question: In 20Y3:

1. Sales are expected to increase by 15 percent.
2. Gross margin will increase to 50 percent.
3. Operating expenses will increase to $40,100 (including $6,800 in depreciation).
4. The tax rate will be reduced to 48 percent.

Selected financial information (000's):

	20Y1	20Y2
Sales	$77,112	$78,030
Cost of goods sold	39,168	39,474
Gross profit	37,944	38,556
Operating expenses	33,660	33,660
Pretax profit	4,284	4,896
Income tax expense	2,142	2,448
Net profit after tax	2,142	2,448

What is the projected net profit after tax in 20Y3?

$2,479 ($2,033) $7,055 $12,408