A company earned a total revenue of N108 million with a total cost of N91 million in 1991. If it paid 45% tax on its gross profit for that year, determine its net profit.
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Correct Answer: Option C
Explanation:
The company's gross profit is N108 million − N91 million = N17 million. The tax paid is 45% of N17 million, which is N7.65 million. Therefore, the net profit is N17 million − N7.65 million = N9.35 million.
The company's gross profit is N108 million − N91 million = N17 million. The tax paid is 45% of N17 million, which is N7.65 million. Therefore, the net profit is N17 million − N7.65 million = N9.35 million.