Ridgeway Industries had earnings before taxes (EBT) of $500,000 and sales revenue of $2,500,000. If the company is in the 35% tax bracket, what is its after- tax profit margin?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 8MC: A company has wants to earn an income of $60,000 after-taxes. If the tax rate is 32%, what must be...
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What is it's after tax profit margin on these financial accounting question?

Ridgeway Industries had earnings before taxes (EBT) of
$500,000 and sales revenue of $2,500,000.
If the company is in the 35% tax bracket, what is its after-
tax profit margin?
Transcribed Image Text:Ridgeway Industries had earnings before taxes (EBT) of $500,000 and sales revenue of $2,500,000. If the company is in the 35% tax bracket, what is its after- tax profit margin?
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