In 2018, Snout and Smith Pty Ltd had a gross profit of $27 000 on sales of $110 000.S & S's operating expenses for 2018 were $13 000, and its net profit margin was .0585.Snout and Smith had no interest expense in 2018.What was Snout and Smith's operating profit margin?
A)0.245
B)0.118
C)0.127
D)0.157

Question

Quizplus · Accepted Answer

Operating profit margin = (gross profit - operating expenses)/sales
= ($27,000 - $13,000)/$110,000
= $14,000/$110,000
= 0.127 or 12.7%

In 2018, Snout and Smith Pty Ltd Had a Gross