A Firm's Operating Profit Margin Is 20% with an EBIT

question 78

Multiple Choice

A firm's operating profit margin is 20% with an EBIT of $1.5 million and sales of $5 million.If it has no debt,how much did the firm pay in taxes?

• A) $50,000
• B) $300,000
• C) $350,000
• D) $500,000

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Definitions:

Conscience Principle

The ethical guideline that one's actions should be guided by conscience, reflecting an internal sense of right and wrong.

Cognitive Theories

Psychological theories that emphasize mental processes such as thinking, perception, and information processing in understanding behavior.

Unwanted Emotions

Feelings or emotional responses that are considered undesirable or inappropriate in certain contexts or situations.