If the firm made total sales of $999 million (mn) in 2020, spent $197 mn on inputs and $193 mn on operating activities, and paid 20% of income taxes, what is its net profit margin? (your answer must be rounded off to the nearest %, i.e., no decimal places)

If the firm made total sales of $999 million (mn) in 2020, spent $197 mn on inputs and $193 mn on operating activities, and paid 20% of income taxes, what is its net profit margin? (your answer must be rounded off to the nearest %, i.e., no decimal places)

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter9: Applications Of Cost Theory

Section: Chapter Questions

Problem 1.7CE: Again, holding the other variables constant, what would be the saving in per-student operating...

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Concept explainers

Cost of Production

In economic theory, production costs are the costs incurred by an industrial organization when it engineers a project or provides a service that generates revenue and benefits. Labor costs, raw materials, consumable manufacturing costs, and general overhead sum up, accounting for production costs. Total cost data is calculated by combining total direct costs of materials, labor costs, and total production costs.

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If the firm made total sales of $999 million (mn) in 2020, spent $197 mn on inputs and $193 mn on
operating activities, and paid 20% of income taxes, what is its net profit margin?
(your answer must be rounded off to the nearest %, i.e., no decimal places)

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