Which of the following is NOT a driving force of the operating profit margin?
A) The amount of leverage a firm uses.
B) Cost of goods sold
C) General and administrative expenses
D) The unit price of product sold

Question

Quizplus · Accepted Answer

The amount of leverage a firm uses is not a direct driving force of the operating profit margin. Operating profit margin is primarily influenced by factors related to the company's operational efficiency and pricing strategy, such as cost of goods sold, general and administrative expenses, and the unit price of the product sold. Leverage, on the other hand, affects the financial structure of a company and its net income rather than its operating profit margin directly.

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