PDQ Corp.has sales of $4,000,000; the firm's cost of goods sold is $2,500,000; and its total operating expenses are $600,000.What is PDQ's EBIT?

Name: PDQ Corp.has sales of $4,000,000; the firm's cost of goods sold is $2,500,000; and its total operating expenses are $600,000.What is PDQ's EBIT?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

EBIT (Earnings Before Interest and Taxes) is calculated as Sales minus Cost of Goods Sold and Operating Expenses. So, EBIT = $4,000,000 - $2,500,000 - $600,000 = $900,000.

PDQ CorpHas Sales of $4,000,000; the Firm's Cost of Goods Sold