Asked by Jason
The ABC Corp. had net income before taxes of $4000,000 and sales of $2,000,000. If it is in the 50% tax bracket its after-tax profit margin is?
A. 5%
B. 10%
C. 20%
D. 25%
net income $400,000 - 50% taxes = $200,000
$200,000 / $2,000,000 sales = 10% after-tax profit margin
A. 5%
B. 10%
C. 20%
D. 25%
net income $400,000 - 50% taxes = $200,000
$200,000 / $2,000,000 sales = 10% after-tax profit margin
Answers
Answered by
sweta parajuli
After tax = before tax - tax %of before tax. = 400000 - 200000 = 200000answer