The controller of garden supply distribution company is concerned about the increase in the number of different products the company now re-sells.He wants to determine how well costs are being managed because the workers seem less efficient.What financial ratio should he review?
A) total asset turnover
B) return on equity
C) operating profit margin
D) financial leverage

Question

Quizplus · Accepted Answer

The operating profit margin measures the percentage of revenue that is left over after deducting all operating expenses, including labor costs. By reviewing this ratio, the controller can assess whether the increased number of products is negatively impacting profitability and find ways to manage costs more effectively.

The Controller of Garden Supply Distribution Company Is Concerned About