Dr. Gupta Diagnostics' income statement for 20XX is as follows: Sales Cost of goods sold Gross profit Selling and administrative expense Operating profit Interest expense Income before taxes Taxes (30%) Income after taxes Profit margin % Income after taxes Profit margin $2,910,000 1,950,000 a. Compute the profit margin in 20XX. (Round the final answer to 2 decimal places.) $ 960,000 363,000 597,000 55,300 20XY 541,700 162,510 b. Assume in 20XY sales increase by 10 percent and cost of goods sold increases by 20 percent. The firm is able to keep all other expenses the same. Once again, assume a tax rate of 30 percent. What are the income after taxes and profit margin in 20XY? (Round the profit margin to 2 decimal places.) $379, 190 %

Dt Gupta Diagnostics' income statement for 20X is as follows: a. Compute the profit margin in 20X. (Round the final answer to 2 decimal places.) Profit margin b. Assume in 20XY sales increase by 10 percent and cost of goods sold increases by 20 percent. The firm is able to keep all other expenses the same. Once again, assume a tax rate of 30 percent. What are the income after taxes and profit margin in 20Y ? (Round the profit margin to 2 decimal places.)