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plz answer both Last year, Cayman Corporation had sales of $28 million, total variable costs of $13 million, and total fixed costs of $5,000,000. In
plz answer both
Last year, Cayman Corporation had sales of $28 million, total variable costs of $13 million, and total fixed costs of $5,000,000. In addition, they paid $4 million in interest to bondholders. Cayman has a marginal tax rate of 21 percent. If Cayman's sales increase by 15%, what should be the increase in operating income? SET YOUR CALCULATOR TO 4 DECIMAL PLACES THEN ROUND TO 2 DECIMAL PLACES AT THE END. DO NOT ENTER THE \% SIGN. FOR EXAMPLE, IF YOUR ANSWER IS 12.7125, ENTER IT AS 12.71. Question 2 1 pts Last year, Cayman Corporation had sales of $7 million, total variable costs of $2 million, and total fixed costs of $1 million. In addition, they paid $480,000 in interest to bondholders. Cayman has a 21% marginal tax rate. If Cayman's sales increase 5%, what should be the increase in operating income? SET YOUR CALCULATOR TO 4 DECIMAL PLACES. ROUND TO 2 DECIMAL PLACESAT THE END. DO NOT ENTER THE \% SIGN. FOR EXAMPLE, IF YOUR ANSWER IS 9.4567 , ENTER IT AS 9.46 Step by Step Solution
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