The Bubba Corp. had net income before taxes of $300,000 and sales of $2,000,000. If it is in the 50% tax bracket its after tax profit margin is:

Name: The Bubba Corp. had net income before taxes of $300,000 and sales of $2,000,000. If it is in the 50% tax bracket its after tax profit margin is:
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Question

Quizplus · Accepted Answer

The after-tax income is $300,000 * (1 - 0.50) = $150,000. The after-tax profit margin is ($150,000 / $2,000,000) * 100% = 7.5%.