A firm has total sales of $64 million. It has gross profit of $12 million, operating income of $8.5 million, and net income of $8 million. a) What is the firm's net profit margin? b) If net profit increased to 15% from your answer in a), what percentage change does this repres

A firm has total sales of $64 million. It has gross profit of $12 million, operating income of $8.5 million, and net income of $8 million. a) What is the firm's net profit margin? b) If net profit increased to 15% from your answer in a), what percentage change does this repres

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter7: Analysis Of Financial Statements

Section: Chapter Questions

Problem 6P

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. A firm has total sales of $64 million. It has gross profit of $12 million, operating income of $8.5 million, and net income of $8 million.

a) What is the firm's net profit margin?

b) If net profit increased to 15% from your answer in a), what percentage change does this represent?

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