Dr. Gupta Diagnostics income statement for 20XX is as follows:

Sales	$2,790,000
Cost of goods sold	2,070,000
Gross profit	720,000
Selling and administrative expense	350,000
Operating profit	370,000
Interest expense	51,400
Income before taxes	318,600
Taxes (30%)	95,580
Income after taxes	$223,020

a. Compute the profit margin in 20XX. (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 20XY? (Round the profit margin to 2 decimal places.)

	20XY
Income after taxes	$
Profit margin	%