A venture has net sales of $400,000,cost of goods sold of $200,000,operating expenses (selling,general,and administrative)of $100,000,and interest expenses of $50,000.What is the operating profit margin?
A)50.0%
B)75%
C)25%
D)40%

Question

Quizplus · Accepted Answer

Operating profit margin is calculated as (Net Sales - Cost of Goods Sold - Operating Expenses) / Net Sales. 
Therefore, (400,000 - 200,000 - 100,000) / 400,000 = 0.25 or 25%. The correct choice is C.

A Venture Has Net Sales of $400,000,cost of Goods Sold