The Haines Corporation shows the following financial data for 20X1 and 20X2: 20X1 20X2:

20X1 20x2

Sales: $3,200,000 $3,990,000

Cost of goods sold: $1,790,000 $2,320,000

Gross profit: $1,410,000 $1,670,000

Selling & administrative expense: $250,000 $284,000

Operating profit: $1,160,000 $1,386,000

Interest expense: $48,500 $45,200

Income before taxes: $1,111,500 $1,340,800

Taxes (35%): $389,025 $469,280

Income after taxes: $722,475 $871,520

For each year, compute the following ratios and indicate how the change in each ratio will affect profitability in 20X2.

A) Cost of goods sold to sales: 20X1 : % 20X2: % Profability : %

B) Selling and administrative expense to sales: 20X1 : % 20X2: % Profability : %

C) Interest expense to sales: 20X1 : % 20X2: % Profability : %