Dr. Zhivago Diagnostics Corp.'s income statement for 20X1 is as follows:

Sales	$	2,790,000
Cost of goods sold		1,790,000
Gross profit	$	1,000,000
Selling and administrative expense		302,000
Operating profit	$	698,000
Interest expense		54,800
Income before taxes	$	643,200
Taxes (30%)		192,960
Income after taxes	$	450,240

a. Compute the profit margin for 20X1. (Input the profit margin as a percent rounded to 2 decimal places.)

b. Assume in 20X2, 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 on income before taxes. What is income after taxes and the profit margin for 20X2? (Input the profit margin as a percent rounded to 2 decimal places.)