Problem:
The acai berry is a fruit that grows in the Amazon rain forest making up over 40% of the diet of the healthy people in that region. Marketers of this berry purport it to be significantly high in antioxidants, vitamin A, vitamin B, vitamin C, iron, and calcium, as well as other types of minerals and acids that benefit the body. According to "Weight-loss Berry Claiming Oprah Endorsement Makes Wallets Slim and Consumers Angry Warns BBB," an article by the Better Business Bureau from January 5, 2009, acai products approached sales of $15 million last year, up from $500,000 in previous years. If the profit margin for acai product sales is 23%.
Required:
Question: What is the net income if net sales is $12.5 million?
Note: Show supporting computations in good form.