Please refer to Table 4-5 for the following questions.
Table 4-5
Yen Inc.
Balance Sheet

Yen Inc.
Income Statement
For the year ended December 31, 2010

-Based on the information contained in Tables 4-5,what was Yen's operating profit margin for 2010?
A) 26.50%
B) 21.34%
C) 14.29%
D) 11.67%

Question

Please refer to Table 4-5 for the following questions.
Table 4-5
Yen Inc.
Balance Sheet
  
Yen Inc.
Income Statement
For the year ended December 31, 2010
 
-Based on the information contained in Tables 4-5,what was Yen's operating profit margin for 2010?
A) 26.50% 
B) 21.34% 
C) 14.29% 
D) 11.67%

Quizplus · Accepted Answer

Operating profit margin is calculated as Operating Profit divided by Revenue, expressed as a percentage. If Table 4-5 shows Yen's Operating Profit for 2010 and its Revenue for the same year, you would calculate the margin by dividing the Operating Profit by the Revenue and then multiplying by 100 to get a percentage. The correct answer, 14.29%, suggests that this was the result of such a calculation based on the data provided in Tables 4-5.

Please Refer to Table 4-5 for the Following Questions