Based on the above income statement data, the company\'s operating profit margin

Question

Based on the above income statement data, the company's operating profit margin is

Assume a company's Income Statement for Year 7 is as follows: Income Statement Data Year 7 (in 000s) Sales Revenues $ 250,000 Production Costs 126,500 Delivery Costs 6,600 Marketing Costs 42,500 Administrative Expenses 13,000 Operating Profit 61,400 Net Interest 2,500 Income Before Taxes 58,900 Taxes 17,670 Net Income $ 31,230

Based on the above income statement data, the company's operating profit margin is

a. 23.56% b. 31.40% c. 7.07% d. 24.56% e. None of these

Explanation / Answer

profit margin = operating income /sales * 100 = 61400/250000 * 100 = 24.56 %

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