A company had the following income statement for the previous reporting period (earnings before interest and taxes): Revenue $26,000,000 COGS $20,932409 SG&A $4,503,125 EBIT $564,466 The company is not at its maximum production and wants to make some additional sales this quarter to some new customers. Assuming that indirect costs have already been covered, choose the largest (temporary!) discount that could be offered without losing money. a) 0% b) 10% c) 15% d) 20% e) 25%

Name: Solved: A company had the following income statement for the previous reporting period (earnings before interest and taxes): Revenue $26,000,000 COGS $20,932409 SG&A $4,503,125 EBIT $564,466 The company is not at its maximum production and wants to make some additional sales this quarter to some new customers. Assuming that indirect costs have already been covered, choose the largest (temporary!) discount that could be offered without losing money. a) 0% b) 10% c) 15% d) 20% e) 25% - MathMaster
Brand: MathMaster
Rating: 4.9 (233 reviews)

233

likes

1165 views

Answer to a math question A company had the following income statement for the previous reporting period (earnings before interest and taxes): Revenue $26,000,000 COGS $20,932409 SG&A $4,503,125 EBIT $564,466 The company is not at its maximum production and wants to make some additional sales this quarter to some new customers. Assuming that indirect costs have already been covered, choose the largest (temporary!) discount that could be offered without losing money. a) 0% b) 10% c) 15% d) 20% e) 25%

$Expert avatar$

Jayne

4.4

106 Answers

Gross Profit Margin = (Revenue - COGS) / Revenue Given the values: Revenue = $26,000,000 COGS = $20,932,409 We can substitute these values into the formula: Gross Profit Margin = ($26,000,000 - $20,932,409) / $26,000,000 This will give us the gross profit margin as a decimal. To convert it to a percentage, we multiply by 100. The answer is 20%

Frequently asked questions (FAQs)

Math question: Find the measure of an angle bisector that divides a triangle into two congruent angles with measures 40° and 70°.

What is the sine value of an angle measuring 45 degrees?

Question: Solve the equation 4x + 7 = 3x + 10.

New questions in Mathematics

-6(3x-4)=-6

5/8 x 64

X^2 = 25

Suppose the horses in a large they will have a mean way of 818 pounds in a variance of 3481. What is the probability that the mean weight of the sample of horses with differ from the population mean by more than 18 pounds is 34 horses are sampled at random from the stable.

The beta of a company is 1,41 and its cost of equity 18,95%. What is then the market risk premium if the risk free rate is 0,94%? (in %, 2 decimal places)

To celebrate the five-year anniversary of a consultancy specializing in information technology, the administrator decided to draw 3 different qualification courses among its 10 employees. Considering that the same employee cannot be drawn more than once, the total number of different ways of drawing among employees is:

Mrs. Emily saved RM10000 in a bank. At the end of the eighth year, the amount of money accumulated amounted to RM19992.71. If the bank pays an annual interest of x% for a year compounded every 6 months. Calculate the value of x.