Given the following information for Smith Company's Northern Division, what is the division's EBITDA margin? Revenue $44,140
Operating income 18,112
Depreciation 5,000
Amortization 1,422
Tax rate 20%

a. $37,718
b. $13,112
c. $24,534
d. $19,627

EBITDA margin is 55.58%

Explanation:

EBITDA margin is computed as;

= EBITDA / Total revenue

Where,

EBITDA = Earnings before interest and taxes + depreciation + amortization

EBITDA margin = ($18,112 + $5,000 + $1,422) / $44,140

EBITDA margin = $24,534 / $44,140

EBITDA margin = 55.58%

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation:

1) the stages a new product goes through from beginning to end, i.e., the stages that a product passes through from introduction through growth, maturity, and decline. 2) the time from initial research and development to the time at which sales and support of the product to customers are withdrawn. 3) the period of time during which a product can be produced and marketed profitably.

                                          hope it