Use the following selected financial data to calculate the operating profit marg

Question

Use the following selected financial data to calculate the operating profit margin for CBA Company. You may use Appendix A of the textbook to locate the formulas, pgs. 269-271.

Net sales$600,000
Cost of goods sold 450,000
Operating expenses 90,000
Net income 20,000
Total assets 220,000
Total liabilities 132,000

3.3%

22.2%

25.0%

10.0%

3.3%

22.2%

25.0%

10.0%

Use the following selected financial data to calculate the operating profit marginoBCompany. You may use Appendix A of the textbook to locate the formulas, pgs. 269-271 Net sales$600,000 Cost of goods sold 450,000 Operating expenses 90,000 Net income 20,000 Total assets 220,000 Total liabilities 132,000 O 3.3% O 22.2% O 25.0% O 10.0%

Explanation / Answer

Answer is 10%

Particulars Amt Sales (A) 600000 Less: Cost of Goods Sold 450000 Gross Profit 150000 Less: Operating Expenses 90000 Operating Profit (B) 60000 Operating Profit Margin (B/A) 10.00%

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