The revenue is $24,000,the cost of goods sold is $12,000,other expenses (from selling and administration)are $6,000,and depreciation is $2,000.What is the EBIT?

Question

Quizplus · Accepted Answer

EBIT stands for Earnings Before Interest and Taxes. To calculate it, we need to subtract the cost of goods sold, other expenses, and depreciation from the revenue.
EBIT = Revenue - Cost of Goods Sold - Other Expenses - Depreciation
EBIT = $24,000 - $12,000 - $6,000 - $2,000
EBIT = $4,000

The Revenue Is $24,000,the Cost of Goods Sold Is $12,000,other