Dr. Zhivàgo Diagnostics Corp.'s income statement for 20X1 is as follows: Sales $ 2,970,000 Cost of goods sold 1,600,000 Gross profit $ 1,370,000 Selling and administrative expense 375,000 Operating...

Dr. Zhivàgo Diagnostics Corp.'s income statement for 20X1 is as follows:

a.Compute the profit margin for 20X1.(Input the profit margin as a percent rounded to 2 decimal places.)



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.)