A firm has net sales of $5,500,000, Cost of Goods Sold $3,500,000, Depreciation Expenseof $300,000, Selling and Administrative Expenses of $500,000, Interest Expense of $200,000, and an average tax rate of 20%.

25. The firm's Net Income is:

• a. 210,000
• b. 400,000
• c. 700,000
• d 800,000

26. The firm's Operating Margin is:

a. 14.0%

b. 21.8%

c. 33.3%

d. 67.1%

27. firm's Gross Profit Margin is:

a. 21.5%

b. 30.0%

c. 36.4%

d 50.0%

28. firm's Pre-taxable Income is:

• a. 1, 200,000
• b. 1,000,000
• c. 800,000
• d. 500,000