A Firm's Net Profit Margin Increased from 3

question 103

Multiple Choice

A firm's net profit margin increased from 3.2% to 3.8% from 2014 to 2015.If total sales increased from $312 million in 2014 to $345 million in 2015,what was the increase in net income?

• A)$19 million
• B)$21 million
• C)$3 million
• D)$2 million
• E)$13 million

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Definitions:

Personal or Investment Purposes

The intention behind acquiring or using property, either for personal enjoyment or to generate income or profit.

Preferential Tax Rates

Lower tax rates applied to specific types of income, such as capital gains or qualified dividends, which are taxed at a different rate than ordinary income.

Capital Gains

The profit from the sale of property or an investment when the selling price exceeds the original purchase price.

Capital Losses

The loss incurred when a capital asset (like stocks or real estate) is sold for less than its purchase price.