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    Profit Margin & Income Calculation

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    ABC Company Income Statement for 1998

    1. Sales.........................................................3,000,000

    2. Cost of Goods Sold....................................2,100,000

    3. Gross Profits..............................................900,000

    4. Selling and admin expense......................450,000

    5. Depreciation expense................................

    6. Operating profit (EBIT)...............................450,000

    7. Interest expense...........................................75,000

    8. Earnings before taxes (EBT).................................375,000

    9. Taxes.........30%.........................................................112,500

    10. Earnings after taxes (EAT)........................................262,500

    What is the method for computing the profit margin for 1998?

    If sales in 1999 increase by 10% and cost of goods sol increases by 25%, would this company be able to keep all expenses the same? How would I find the profit margin and income for the next year?

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    https://brainmass.com/business/business-math/profit-margin-income-calculation-291644

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    The solution computes profit margin & income with the given information.

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