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Suppose that in 2023, Global launches an aggressive marketing campaign that boosts sales by 14%. However, their operating margin falls from 5.57% to 4.40%. Suppose
Suppose that in 2023, Global launches an aggressive marketing campaign that boosts sales by 14%. However, their operating margin falls from 5.57% to 4.40%. Suppose that they have no other income, interest expenses are unchanged, and taxes are the same percentage of pretax income as in 2022 GLOBAL CONGLOMERATE CORPORATION Income Statement Year Ended December 31 (in $ millions) 2022 2021 Total sales 186.7 176.1 Cost of sales (153.4) (147.3) Gross Profit 33.3 28.8 Selling, general, and administrative expenses (13.5) (13.0) Research and development (8.2) (7.6) Depreciation and amortization (1.2) (1.1) Operating Income 10.4 7.1 Other income - - Earnings Before Interest and Taxes (EBIT) 10.4 7.1 Interest income (expense) (7.7) (4.6) Pretax Income 2.7 2.5 Taxes (0.7) (0.6) Net Income 2 1.9 Earnings per share: $0.556 $0.528 Diluted earnings per share: $0.526 $0.500 What is the global EBIT in 2023
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