Which of the following is NOT a driving force of the operating profit margin?
A)The average selling price for each product
B)The ability to control all of the firm's expenses
C)The ability to control general and administrative expenses
D)The number of units of product sold

Question

Quizplus · Accepted Answer

The ability to control all of the firm's expenses is not a driving force of the operating profit margin. The operating profit margin is calculated as operating income divided by net sales. Operating income is calculated as net sales minus cost of goods sold and operating expenses. Therefore, the ability to control all of the firm's expenses would not affect the operating profit margin.

Which of the Following Is NOT a Driving Force of the Operating