Moose Industries faces the following tax schedule:

Taxable Income Tax on Base of Bracket Percent on Excess Above Base

Base Up to $50,000 $0 15%

$50,000-$75,000 7,500 25

$75,000-$100,000 13,750 34

$100,000-$335,000 22,250 39

$335,000-$10,000,000 113,900 34

$10,000,000-$15,000,000 3,400,000 35

$15,000,000-$18,333,333 5,150,000 38

Over $18,333,333 6,416,667 35

Last year the company realized $450,000 in operating income (EBIT). Its annual interest expense is $150,000.

a) How much tax does the company owe on this income?

b) What is the average tax rate?

c) What is the marginal tax rate?