A Firm Reports a Net Profit Margin of 10% on Sales

question 83

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?

• A) $100,000
• B) $300,000
• C) $500,000
• D)$800,000

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Definitions:

Independent

Not influenced or controlled by others; having the freedom to act or function separately.

Plot Residuals

A graphical representation used in statistics to show the difference between observed and predicted values given by a model.

Normality

A statistical assumption that a dataset follows a normal distribution, characterized by a symmetrical bell-shaped curve.

Residuals

Residuals are the differences between observed and predicted values in a statistical model, reflecting the discrepancy in predictions.