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?

Question

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

Answer 1

After tax = before tax - tax %of before tax. = 400000 - 200000 = 200000answer