A Firm's Net Profit Margin Increased from 8

question 37

Multiple Choice

A firm's net profit margin increased from 8.1% to 8.3% from 2014 to 2015.If net income increased from $4.5 million to $5.6 million,what was the change in the firm's sales?

• A)$55 million
• B)$21 million
• C)$0.1 million
• D)$11.9 million
• E)$1.1 million

---

Definitions:

Capital Expenditures Budget

A plan for a company's spending on fixed assets, such as buildings or equipment, over a period.

Fixed Assets

Long-term tangible assets purchased for business use and not expected to be converted into cash in the short term, such as buildings, machinery, and equipment.

Dollar Amounts

A value or quantity expressed in terms of dollars, used to denote the price, cost, or value of something.

Flexible Budgeting

A budgeting process that adjusts to different levels of operation activities or volumes.