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:

Gastrovascular Cavity

A digestive compartment with a single opening found in certain invertebrates, serving both digestive and circulatory functions.

Dietary Fiber

Indigestible parts of plant foods that help to maintain a healthy digestive system, regulate blood sugar, and lower cholesterol levels.

Reabsorbed

The process by which substances are taken back into the body's tissues, particularly in reference to nutrients or fluids after initial filtration or secretion.

Hydrolyzed

A chemical process in which a molecule is cleaved into two or more parts through the reaction with water.