Given the following information extracted from the income statement of Widget Company ( Widget Company has no depreciation or amortization expenses),

The gross profit margin and operating margin for Widget Company are closest to:
A) GPM = 26.67%; OM = 17.78%
B) GPM = 17.78%; OM = 26.67%
C) GPM = 53.33%; OM = 14.44%
D) GPM = 14.44%; OM = 53.33%

Question

Given the following information extracted from the income statement of Widget Company ( Widget Company has no depreciation or amortization expenses),
  
The gross profit margin and operating margin for Widget Company are closest to: 
A) GPM = 26.67%; OM = 17.78% 
B) GPM = 17.78%; OM = 26.67% 
C) GPM = 53.33%; OM = 14.44% 
D) GPM = 14.44%; OM = 53.33%

Quizplus · Accepted Answer

S - COGS = 600,GPM = 600/(150*15)= 26.67%,NOI = 600-200 = 400,OM = 400/(150*15)= 17.78%

Given the Following Information Extracted from the Income Statement of Widget