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MrBBaggins Has Just Computed the Operating Margin and the Gross

Question 88

Essay

Mr.B.Baggins has just computed the operating margin and the gross profit margin for Hoppit Company and has found that the operating margin is greater than the gross profit margin.Is this possible? Why or why not? Explain your reasoning.

Correct Answer:

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Gross profit margin = (Sales - Cost of g...

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