Using this value, the earnings before interest and taxes will be:
A) $20,000
B) $23,000
C) $28,000
D) $37,000
E) $40,000

Name: Using this value, the earnings before interest and taxes will be: A) $20,000 B) $23,000 C) $28,000 D) $37,000 E) $40,000
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Question

Quizplus · Accepted Answer

Earnings before interest and taxes (EBIT) is calculated as revenue minus expenses. In this case, revenue is $40,000 and expenses are $20,000. Therefore, EBIT is $40,000 - $20,000 = $20,000.

Using This Value, the Earnings Before Interest and Taxes Will