Problem 1, A and B

1. Your company had 580 million in sales in 2022 and 534 milloo in operating expenses. along with total assets of 542 million and total debt of $25 million. The operating profit margin was 18 percent for the year. Construct a multi-etep income statement like the one below to answer these two questions a. If the company's uax rate is 32 peroent and the interest rate on coengany debt is. 7 percent, what are the 2022 values of operating profit and net protif? Assume that thas year's iaterest nast be paid in full on all outstandine debt. b. What are the gross and net profit margins? ACIAS 130 Homewark +lage 2 2. Retro Company produces four lines of accessunics for a major U.S. tractor manufacturer. The lines are known by the code letters Z,Y,X, and W. The current sales mis for the Retro Company and the contribusion margin ratio foe these product lines are as follows: Forecasted total sales for next year are $220,000 and botal fixed costs $45,000. a. Construet a table like the one illustrated belows showing the dollar values for; 1) sales, 2) variable costs, and 3) the contribution rosociatod with each prodact line and the company. b. Calculate the overall coatribution magkin ratio (a percentage) and the beeak-even sales dollars for the Retro Company