A corporation recently reported $15,000 of sales, $7,500 of operating costs other than depreciation, and $1,200 of depreciation. The company had no amortization charges, it had outstanding $6,500 of bonds that carry a 6% interest rate, and its federal-plus-state income tax rate was 35%.

a. How much was the firm's net income after taxes?

b. What was their profit margin?