Bae IncHas the Following Income Statement A) $37060
B) $390

question 18

Multiple Choice

Bae Inc.has the following income statement.How much net operating profit after taxes (NOPAT) does the firm have? $$\begin{array} { l r r } \text { Sales } & & \$ 2,000.00 \\\text { Costs } & & 1,200.00 \\\hline \text { Depreciation } && 100.00 \\\text { EBIT }& \$ & 700.00 \\\hline \text { Interest exgense } & & 200.00 \\\text { EBT }& \$ & 500.00 \\ \text { Taxes (35\%) }& & 175.00 \\\text { Net income } & & \$ &325.00\end{array}$$

• A) $370.60
• B) $390.11
• C) $410.64
• D) $432.25
• E) $455.00

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Definitions:

Operating Leverage

A measure of how revenue growth translates into growth in operating income, influenced by the proportion of fixed costs in total costs.

Net Operating Income

Income produced by a firm's regular activities, not including taxes and interest.

Sales Increase

The rise in the quantity or volume of products sold or revenue generated over a specific period.

Variable Expenses

Costs that vary in direct proportion to changes in the level of production or sales volume, such as materials or sales commissions.