Luther Corporation
Consolidated Income Statement
Year ended December 31 (in $millions)

Refer to the income statement above. Luther's operating margin for the year ending December 31, 2005 is closest to ________.
A) 10.18%
B) 16.29%
C) 20.36%
D) 24.43%

Question

Luther Corporation
Consolidated Income Statement
Year ended December 31 (in $millions)

Refer to the income statement above. Luther's operating margin for the year ending December 31, 2005 is closest to ________.
A) 10.18% 
B) 16.29% 
C) 20.36% 
D) 24.43%

Quizplus · Accepted Answer

C) Operating margin = Operating income / Sales = $114.6 / $562.8 = 0.2036 or 20.36%

Luther Corporation Consolidated Income Statement