XYZ Inc: Earnings After Taxes XYZ Inc. had sales of $1 500 000 for 2007. The cost of goods sold are 73% of sales selling and administrative expenses were 8% of sales. Depreciation expense was $22 000 and interest expense for the year was $19 000. The company pays income tax at a rate of 28%.a. Compute earnings after taxes b. The company has come up a plan to increase selling and administrative expenses to 12% of sales. As a result it is expected that sales will increase to $1 800 000. The cost of goods solid will be reduced to 70% of sales. Depreciation expense will be increased to $30 000. The income tax rate will remain at 28%. Compute earnings after taxes given this new set of circumstances.