A Firm Reports a Net Profit Margin of 10

question 93

Multiple Choice

A firm reports a net profit margin of 10.0% on sales of $3 million when ignoring the effects of financing.If taxes are $200,000, how much is EBIT?

• A)$100,000
• B)$300,000
• C)$500,000
• D)$700,000

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Definitions:

Extra Money

Additional funds or income that exceed regular earnings or expected amounts.

Extra Hours

Additional time worked beyond the standard or scheduled working hours.

Family

A social unit consisting of parents and their children, considered as a group, whether dwelling together or not; often extends to include relatives.

Customer Service

Assistance and advice provided by a company to those people who buy or use its products or services.