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A Company Has Total Revenue of $560,000 and Total Expenses

Question 65

Multiple Choice

A company has total revenue of $560,000 and total expenses of $330,000.If the company overstates sales by $10,000,what is the effect on the company's net profit margin?


A) Net profit margin would be overstated.
B) Net profit margin would be understated.
C) Net profit margin would be unaffected.
D) Net profit margin cannot be computed because overstating sales is unethical.

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