A Company Has Total Revenue of $560,000 and Total Expenses

question 65

Multiple Choice

A company has total revenue of $560,000 and total expenses of $330,000.If the company overstates sales by $10,000,what is the effect on the company's net profit margin?

• A) Net profit margin would be overstated.
• B) Net profit margin would be understated.
• C) Net profit margin would be unaffected.
• D) Net profit margin cannot be computed because overstating sales is unethical.

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