When a company's operating profit is divided by its sales revenues, the financial measure is referred to as
A)gross profit margin.
B)a return on investment.
C)a net profit.
D)an operating margin.
E)an operating cost.

Question

Quizplus · Accepted Answer

Operating margin is calculated by dividing a company's operating profit (the amount it has left after all the costs of making the product and running the business have been deducted) by sales revenues.

When a Company's Operating Profit Is Divided by Its Sales