Problem:
California Retailing Inc. has sales of $4,000,000; the firm's cost of goods sold is $2,500,000; and its total operating expenses are $600,000.
Required:
Question 1: What is California Retailing's EBIT? Please show all work and provide step by step solution.
A) $850,000
B) $875,000
C) $900,000
D) $1,300,000