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Question 2: Consider the following scenario for XYZ Corporation: XYZ Corporation's total sales for the year amounted to $150,000. The cost of goods sold was

Question 2:

Consider the following scenario for XYZ Corporation:

  • XYZ Corporation's total sales for the year amounted to $150,000.
  • The cost of goods sold was $90,000.
  • Operating expenses were $35,000.
  • Interest expenses were $5,000.
  • The tax rate is 30%.
  1. Calculate the Gross Profit Margin.
  2. Calculate the Operating Profit Margin.
  3. Calculate the Net Profit Margin.
  4. Determine the Earnings Before Interest and Taxes (EBIT).
  5. Calculate the Earnings After Taxes (EAT).

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