Sales Cost of goods sold Gross profit Selling and administrative expense Operating profit Interest expense Income before taxes Taxes (30%) Income after taxes $ 2,710,000 1,850,000 $ 860,000 346,000 $ 514,000 58,000 $ 136,800 $ 319,200 456,000 a. Compute the profit margin for 20X1. (Input the profit margin as a percent rounded to 2 decimal places.) Profit margin 11.78% b. Assume that 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. 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.) 20X2 Income after taxes Profit margin %