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Last year Cayman Corporation had sales of $29 million total variable costs of $14 million,...

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Finance

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Last year Cayman Corporation had sales of $29 million total variable costs of $14 million, and total fixed costs of $5.000.000. In addition, they paid $3 million in interest to bondholders. Cayman has a marginal tax rate of 21 percent. If Cayman's sales increase by 15%, what should be the increase in operating income? SET YOUR CALCULATOR TO 4 DECIMAL PLACES THEN ROUND TO 2 DECIMAL PLACES AT THE END. DO NOT ENTER THE SIGN, FOR EXAMPLE IF YOUR ANSWER IS 12.7125, ENTER IT AS 1271. Last year, Cayman Corporation had sales of $7 million total variable costs of $3 million, and total foxed costs of 51 million. In addition, they paid $480,000 in interest to bondholders. Cayman has a 21% marginal tax rate. If Caymar's sales increase 7%, what should be the increase in operating income? SET YOUR CALCULATOR TO 4 DECIMAL PLACES. ROUND TO 2 DECIMAL PLACES AT THE END. DO NOT ENTER THE X SIGN. FOR EXAMPLE, IF YOUR ANSWER IS 9.4567, ENTERITAS 9.46

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