Answered

Welcome to Westonci.ca, the place where your questions find answers from a community of knowledgeable experts. Discover detailed answers to your questions from a wide network of experts on our comprehensive Q&A platform. Join our Q&A platform to connect with experts dedicated to providing accurate answers to your questions in various fields.

A firm has taxes of $2,000, interest expense of $1,000, EBIT of $7,500, common stock dividends of $1,500, and preferred dividends of $1,200. What is the profit margin if sales are $22,000

Sagot :

Answer:

the  profit margin is 15%

Explanation:

The computation of the profit margin is shown below:

= (EBIT - interest - taxes - preferred dividend) ÷ Sales

= ($7,500 - $1,000 - $2,000 - $1,200) ÷ $22,000

= $3,300 ÷ $22,000

= 15%

Hence, the  profit margin is 15%

Basically the above formula should be applied for the same

Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. Thanks for using our service. We're always here to provide accurate and up-to-date answers to all your queries. Get the answers you need at Westonci.ca. Stay informed with our latest expert advice.