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A company is a victim of a $414 million fraud. At that time its profit margin is 10%. How much additional revenue should the company generate in order to recover the effect on net income?

User Cymruu
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1 Answer

1 vote

Answer:

The correct answer is $4.14 millions

Step-by-step explanation:

The term profit margin represents what percentage of sales has turned into profits.

For example:

if the company reports that it achieved a 10% profit margin, it means that it had a net income of $0.10 for each dollar of sales generated.

"A company is a victim of a $414 million fraud"

$414 million x 10%= $4.14 millions

$4.14 million in additional revenue should the company generate in order to recover the effect on net income.

User Allen Chan
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