Assume the marketing department has presented a plan to increase advertising expenses by $340million. It expects this plan to result in an increase in both net sales and cost of goods sold of25%. (Hint: Increase both sales revenue and sales returns and allowances by25%.) Redo parts (a) and (b) and discuss whether this plan has merit. (Assume a tax rate of 34%, and round all amounts to whole dollars.)

Prepare multiple-step income statement.(Round answers to 0 decimal places, e.g. 15,222.)

Calculate the gross profit rate and the profit margin.(Round answers to 1 decimal place, e.g. 15.2%.)

Gross profit rate

enter percentages rounded to 1 decimal place

%Profit margin