Wage Increases - How Much Can Be Offered? You are the proprietor of Brite Cleaners. The following data are extracted from your most recent income statement: Revenue: Cleaning Storage Tailoring $134 900 5 974 30 500 $171 374 Expense: Rent Delivery Wages Supplies Used General Expense Depreciation Power $4 800 2 930 104 300 3 250 1975 7 560 4250 $129 065 Net Income $ 42 309 The employees have requested a 20 per cent increase in wages. Questions 1. Assuming that no other expense is affected, how much would the wage increase cost the company? 2. Can you grant this request and still make a profit, in light of the above statement? 3. How much would the net income be if the increase were granted? 4. You want to make at least $30 000 per year from the business, and you expect an increase of $5 000 in revenue for the coming year. Calculate the maximum increase that you can grant to your employees, expressed in dollars and as a per- centage. Assume that there is no increase in other expenses