Homework Help: finance after tax profit margin

Posted by Jason on Friday, July 25, 2008 at 12:51pm.

The ABC Corp. had net income before taxes of $400,000 and sales of $2,000,000. If it is in the 50% tax bracket its after-tax profit margin is:

A. 5%
B. 10%
C. 20%
D. 25%

400,000 take away 50% for taxes leaves 200,000.

200,000 after-taxes divided 2,000,000 total sales = 10%

B 10% FINAL ANSWER

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