Please solve this accounting problem The Bubba Corp. had earnings before taxesof $400,000 and sales of $2,000,000.If it is in the 40% tax bracket, what is itsafter-tax profit margin?

Explanation: The formula to calculate after-tax profit margin is = (Net income after tax/Sales) *…

Answered: The Bubba Corp. had earnings before…

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter6: Accounting For Financial Management

Section: Chapter Questions

Problem 3P

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The Bubba Corp. had earnings before taxes of $400,000 and sales of $2,000,000. If it is in the 40% tax bracket, what is its after-tax profit margin?