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Business, 13.06.2021 01:00 neariah24

Dr. Gupta Diagnostics' income statement for 20XX is as follows: Sales Cost of goods sold $2,750,000 1,450,000 Gross profit Selling and administrative expense 1,300,000 377,000 Operating profit Interest expense 923,000 57,600 Income before taxes Taxes (308) 865,400 259,620 Income after taxes $605, 780 a. Compute the profit margin in 20XX. (Round the final answer to 2 decimal places.) Profit margin % b. Assume in 20XY 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. Once again, assume a tax rate of 30 percent. What are the income after taxes and profit margin in 20XY? (Round the profit margin to 2 decimal places.)

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Dr. Gupta Diagnostics' income statement for 20XX is as follows: Sales Cost of goods sold $2,750,000...
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