A firm has net sales of $65,000,operating expenses of $21,300,depreciation of $5,000,cost of goods sold of $36,500,and interest expense of $4,500.What is the operating margin?
A) -2.8 percent
B) 2.6 percent
C) 3.4 percent
D) 9.2 percent
E) 10.3 percent

Question

Quizplus · Accepted Answer

Operating margin = ($65,000 - $21,300 - $5,000 - $36,500) / $65,000 = 3.4 percent

A Firm Has Net Sales of $65,000,operating Expenses of $21,300,depreciation