Y6

Profitabilitation

One Size Fits All Casket Co's income statement for 2008 is as follows:

$1,000,000

Cost of

2.100.000

450.000

450.000

75.000

Geen prot Serg and adatve spes

Operating proft

375,000 112.100

$262,500

Taxes (0)

Compute the profit margin for 2008 h. Assume that in 2009 sales increase by 10 percent and cost of goods sold Increases by 25 perces. The firm is able to keep all other expenses the same. Once again, assume a tax rate of 30 percent on income before taxes

What are income after uses and the profit margin for 2009