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Tesla, Inc. is planning to implement a corporate social responsibility (CSR) initiative focused on reducing its carbon footprint. The initiative is expected to cost $2,000,000
Tesla, Inc. is planning to implement a corporate social responsibility (CSR) initiative focused on reducing its carbon footprint. The initiative is expected to cost $2,000,000 annually. Tesla, Inc. has provided the following financial data for the fiscal year ending December 31, 2023:
- Net income before CSR initiative: $10,000,000
- Sales revenue: $60,000,000
- Total expenses (excluding CSR initiative): $50,000,000
Calculate the impact of the CSR initiative on Tesla's net income and determine the net profit margin ratio after implementing the CSR initiative.
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