The revenue is $10,000, the cost of goods sold is $2,000, the selling, general and administrative expenses are $3,000, and depreciation is $1,000. What is the EBIT?
A) -$1,000
B) $2,000
C) $3,000
D) $4,000
Answer: D
Explanation: D) EBIT = Revenue - (CGS + SGA Expenses + Depreciation)
= $10,000 - ($2,000 + $3,000 + $1,000) = $10,000 - $6,000 = $4,000.
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