Use the table for the question(s)below.
Luther Corporation Consolidated Income Statement Year ended 30 June (in $ millions)

-Refer to the income statement above. Luther's operating margin for the year ending 30 June 2017 is closest to:
A)2.7%
B)16.7%
C)1.8%
D)5.4%

Question

Use the table for the question(s)below.
Luther Corporation Consolidated Income Statement Year ended 30 June (in $ millions)
 
-Refer to the income statement above. Luther's operating margin for the year ending 30 June 2017 is closest to:
A)2.7% 
B)16.7% 
C)1.8% 
D)5.4%

Quizplus · Accepted Answer

The operating margin is calculated by dividing operating income ($20 million) by revenue ($370 million) and multiplying by 100. 
($20 million/$370 million) x 100 = 5.4%

Use the Table for the Question(s)below