A firm reports a net profit margin of 10.0% on sales of $3 million when ignoring the effects of financing.If taxes are $200,000,how much is EBIT?
A) $100,000
B) $300,000
C) $500,000
D) $800,000

Name: A firm reports a net profit margin of 10.0% on sales of $3 million when ignoring the effects of financing.If taxes are $200,000,how much is EBIT? A) $100,000 B) $300,000 C) $500,000 D) $800,000
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Question

Quizplus · Accepted Answer

EBIT = Net profit / Net profit margin= 300,000 / 0.10= $300,000

A Firm Reports a Net Profit Margin of 10