Calculate the Net Income If the Net Margin Is 75

question 4

Multiple Choice

Calculate the net income if the net margin is 75% and sales is $160,000.

• A) $120,000
• B) $240,000
• C) $360,000
• D) $570,000
• E) $600,000

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Definitions:

Targeted Stock Repurchase

A tactic used by corporations to buy back shares from specific shareholders, often to avert a takeover bid or reduce share dilution.

Unfriendly Takeover

An acquisition attempt by a company or individual that is not welcomed or approved by the target company's board of directors.

Horizontal Diversification

A strategy used by companies to increase their product lines or enter into new markets to reduce risk and increase growth opportunities.