Hopper,Inc.
Use the information from Hopper,Inc.to answer the following question.

$$\begin{array} { l r r }
& \mathbf { 2 0 1 8 } & \mathbf { 2 0 1 7 } \
\text { Operating revenues } & \$ 1,900,000 & \$ 1,600,000 \
\text { Operating expenses } & 1,400,000 & 1,100,000 \
\text { Income taxes } & 200,000 & 200,000
\end{array}$$
-Read the information about Hopper,Inc.Which of the following statements is the best answer regarding the company's profit margin?
A)The profit margin was 15.8% in 2018.
B)The profit margin was 15.8% in 2017.
C)The profit margin was 31.5% in 2018.
D)The profit margin was 31.5% in 2017.

Question

Hopper,Inc.
Use the information from Hopper,Inc.to answer the following question.
​
 $$\begin{array} { l r r } 
& \mathbf { 2 0 1 8 } & \mathbf { 2 0 1 7 } \
\text { Operating revenues } & \$ 1,900,000 & \$ 1,600,000 \
\text { Operating expenses } & 1,400,000 & 1,100,000 \
\text { Income taxes } & 200,000 & 200,000
\end{array}$$ ​
-Read the information about Hopper,Inc.Which of the following statements is the best answer regarding the company's profit margin?
A)The profit margin was 15.8% in 2018.
B)The profit margin was 15.8% in 2017.
C)The profit margin was 31.5% in 2018.
D)The profit margin was 31.5% in 2017.

Quizplus · Accepted Answer

Profit margin is calculated as (Net Income / Operating Revenues) * 100. For 2018, Net Income = Operating Revenues - Operating Expenses - Income Taxes = $1,900,000 - $1,400,000 - $200,000 = $300,000. Thus, Profit Margin for 2018 = ($300,000 / $1,900,000) * 100 = 15.8%.

Hopper,Inc ​ -Read the Information About Hopper,Inc

Hopper,Inc
-Read the Information About Hopper,Inc