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?

Question

Clinton Weeks

Business

14 January, 20:14

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?

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Answers (1)

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Hana · Answer 1

The correct answer is $4.14 millions

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.