Use the information from Hopper Inc.to answer the following question(s). $$\begin{array} { l r r }
& 2017 & 2016 \
\text { Operating revenues } & \$ 1,900,000 & \$ 1,600,000 \
\text { Operating expenses } & 1,400,000 & 1,100,000 \
\text { Income taxes } & 200,000 & 200,000
\end{array}$$

-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 2017.
B) The profit margin was 15.8% in 2016.
C) The profit margin was 31.5% in 2017.
D) The profit margin was 31.5% in 2016.

Question

Use the information from Hopper Inc.to answer the following question(s). $$\begin{array} { l r r } 
& 2017 & 2016 \
\text { Operating revenues } & \$ 1,900,000 & \$ 1,600,000 \
\text { Operating expenses } & 1,400,000 & 1,100,000 \
\text { Income taxes } & 200,000 & 200,000
\end{array}$$ ​
​
-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 2017.
B) The profit margin was 15.8% in 2016.
C) The profit margin was 31.5% in 2017.
D) The profit margin was 31.5% in 2016.

Quizplus · Accepted Answer

Profit margin is calculated as (Net Income / Operating Revenues) * 100. For 2017, Net Income = Operating Revenues - Operating Expenses - Income Taxes = $1,900,000 - $1,400,000 - $200,000 = $300,000. Thus, Profit Margin for 2017 = ($300,000 / $1,900,000) * 100 = 15.8%.

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

Use the Information from Hopper Inc

-Read the Information About Hopper, Inc