A corporation's operating profit margin is equal to
A) net income divided by sales.
B) EBIT divided by sales.
C) EBIT divided by net income.
D) sales divided by EBIT.

Question

Quizplus · Accepted Answer

Operating profit margin is a measure of a company's profitability and is calculated as EBIT (earnings before interest and taxes) divided by sales. This ratio gives an indication of how much of each dollar of sales is available to cover other expenses after paying for the cost of goods sold.

A Corporation's Operating Profit Margin Is Equal to