Using the information in Table 2,what was S & S's operating profit margin for 1996?
A)0.245
B)0.118
C)0.127
D)0.157

Question

Quizplus · Accepted Answer

To calculate the operating profit margin, we need to divide operating profit by sales revenue. In this case, we can use the figures from Table 2 for S&S in 1996:

Operating profit = $2,484,000 
Sales revenue = $19,620,000

Operating profit margin = Operating profit / Sales revenue 
= $2,484,000 / $19,620,000 
= 0.1266 or approximately 0.127

Therefore, the answer is C) 0.127.

Using the Information in Table 2,what Was S & S's