Heather Hudson makes stuffed teddy bears. Recent information for her business follows:

Selling price per bear	$ 32.50
Total fixed costs per month	1,460.00
Variable cost per bear	17.50

She sells 380 bears this month.

Required:

Suppose sales increase by 20 percent next month. Calculate the effect that increase will have on her profit.

Note: Round your intermediate calculations to 2 decimal places. Round your final answer to 1 decimal place. (i.e. 0.123 should be entered as 12.3%)