A Firm Reports a Net Profit Margin of 10% on Sales

question 66

Multiple Choice

A firm reports a net profit margin of 10% on sales of $3 million when ignoring the effects of financing.If taxes are $200,000, how much is EBIT (Operating Income) ? (Use the value in dollars)

• A)$100,000
• B)$300,000
• C)$500,000
• D)$800,000

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Definitions:

Mainframes

High-performance computers used primarily by large organizations for bulk data processing, such as census, industry and consumer statistics, ERP, and financial transaction processing.

Big Data

A collection of data so large and complex that it is difficult to manage using traditional database management systems.

ROM

Read-Only Memory, a type of non-volatile storage that is used in computers and electronic devices to store firmware or application software in a way that is not easily or frequently altered.

Volatile

Refers to something that is highly unstable and can change rapidly, often used to describe financial markets or chemical substances.