The a Corporation Has an Operating Profit Margin of 20%,operating

question 47

Multiple Choice

The A corporation has an operating profit margin of 20%,operating expenses of $500,000,and financing costs of $15,000.Therefore,

• A) the corporation's gross profit margin is less than 20%.
• B) the corporation's net profit margin is greater than 20%.
• C) the corporation's gross profit margin is greater than 20%.
• D) the corporation's gross profit margin is equal to 20% because gross profit is not affected by operating expenses or financing costs.

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