Sales $$2,530,000$

Cost of goods sold $1,610,000$

Gross profit $920,000$

Selling and administrative expense $308,000$

Operating profit $612,000$

Interest expense $57,600$

Income before taxes $554,400$

Taxes $(30\%)166,320$

Income after taxes $$388,080$

a$.$ Compute the profit margin in $20$XX$.($Round the final answer to $2$ decimal places.$)$

Profit margin

$\%$

b$.$ Assume in $20$XY 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 $20$XY$?($Round the profit margin to $2$ decimal places.$)$

$20$XY

Income after taxes $

Profit margin

$\%$