Question: Question #15 See the explanation below to work the problem. XYZ Company, a 'for-profit' business, had revenues of $12 million in 2016. Expenses other than

Question #15

See the explanation below to work the problem.

XYZ Company, a 'for-profit' business, had revenues of $12 million in 2016.

Expenses other than depreciation totaled 75 percent of revenues. XYZ Company, must pay taxes at a rate of 40 percent of

pretax (operating) income. All revenues were collected in cash during the year, and all expenses other

than depreciation were paid in cash Depreciation originally was $1.5 million; however, now the company has decided to be more

conservative in its depreciation of its capital assets. XYZ now has $750,000 in depreciation expense

instead of $1.5 million.Based on this change in depreciation expense, what would XYZ's total profit margin?

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