Question 1 of 2 20/25 ! Your answer is correct. Prepare a retained earnings statement. (List items that increase retained earnings first.) IVANHOEDEPARTMENT STORE Retained Earnings Statement For the Year Ended November 30, 2025 Retained Earnings, December 1,2024 * Retained Earnings, November 30, 2025 * eTextbook and Media List of Accounts The vice president of marketing and the director of human resources have developed a proposal whereby the company would compensate the sales force on a strictly commission basis. Given the increased incentive, they expect net sales to increase by 15%. As a result, they estimate that gross profit will increase by $33,015 and expenses by $45,085. Compute the expected new net income. (Hint: You do not need to prepare an income statement.) Then, compute the revised profit margin and gross profit rate. Revised net income Revised profit margin (Round to 1 decimal place, e.g. 15.2\%) Revised gross profit rate (Round to 1 decimal place, e.g. 15.2\%)