Which sentence in the passage is an example of a real-world situation that could restrict Martha’s decisions?
2 answers:
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Given:
Net sales = $400000
Cost of goods sold = $200,000
Operating expenses = $100,000
Interest expenses = $50,000
To find:
The operating profit margin
Solution:
To calculate the operating profit margin, first we have to find the operating profit.
Subtract your total operating expenses from gross profit to calculate operating profit.
That is,
Divide operating profit by gross revenue to calculate operating profit margin.
Therefore, the Operating profit margin is 25%.