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?

Solution Preview :

Prepared by a verified Expert
Finance Basics: Cayman has a 35 marginal tax rate if caymans sales increase
Reference No:- TGS02874750

Now Priced at $10 (50% Discount)

Recommended (98%)

Rated (4.3/5)