A fiRm Has a Profit Margin of 9% on Sales

question 97

Multiple Choice

A firm has a profit margin of 9% on sales of $400,000. There are 10,000 shares of common stock outstanding. What is the earnings per share?

• A) $1.80
• B) $3.60
• C) $4.00
• D) $36.00
• E) $40.00

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Definitions:

Relationship Selling

A sales approach that involves building and maintaining customer trust over a long period of time.

Sales Quotas

Targets set for salespeople or departments to achieve in a specified timeframe to measure performance.

Periodic

Occurring or appearing at regular intervals or cycles.

Technical Specialists

Sales representatives who contribute expertise in the form of product demonstrations and trials, offer recommendations for equipment and setup of machinery, and provide systems integration support.