The revenue is $10,000,the cost of goods sold is $2,000,the selling,general and administrative expenses are $3,000,addition to retained earnings are $2,000,and depreciation is $1,000.What is the EBIT?

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Quizplus · Accepted Answer

EBIT (Earnings Before Interest and Taxes) is calculated by subtracting the cost of goods sold (COGS) and operating expenses from revenue. Here, EBIT = Revenue - COGS - Selling, General and Administrative Expenses - Depreciation = $10,000 - $2,000 - $3,000 - $1,000 = $4,000. Additions to retained earnings and interest are not considered in the calculation of EBIT.

The Revenue Is $10,000,the Cost of Goods Sold Is $2,000,the