Dr. Zhivago Diagnostics Corporation's income statement for 20X1 is as follows: Sales Cost of goods sold...

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Dr. Zhivago Diagnostics Corporation's income statement for 20X1 is as follows: Sales Cost of goods sold Gross profit Selling and administrative expense Operating profit Interest expense Taxes (30%) $ 2,790,000 1,790,000 $ 1,000,000 302,000 $ 698,000 54,800 $ 643,200 192,960 $ 450,240 Income before taxes Income after taxes a. Compute the profit margin for 20X1. Note: Input the profit margin as a percent rounded to 2 decimal places. Profit margin 16.14% 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 are income after taxes and the profit margin for 20X2? Dr. Zhivago Diagnostics Corporation's income statement for 20X1 is as follows: Sales Cost of goods sold Gross profit Selling and administrative expense Operating profit Interest expense Taxes (30%) $ 2,790,000 1,790,000 $ 1,000,000 302,000 $ 698,000 54,800 $ 643,200 192,960 $ 450,240 Income before taxes Income after taxes a. Compute the profit margin for 20X1. Note: Input the profit margin as a percent rounded to 2 decimal places. Profit margin 16.14% 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 are income after taxes and the profit margin for 20X2?