Cayman has a 35 marginal tax rate if caymans sales increase


Last year, Cayman Corporation had sales of $7,000,000, total variable costs of $3,000,000, and total fixed costs of $1,500,000. In addition, they paid $480,000 in interest to bondholders. Cayman has a 35% marginal tax rate. If Cayman's sales increase 7%, what should be the increase in operating income?

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Finance Basics: Cayman has a 35 marginal tax rate if caymans sales increase
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