A Firm Has Net Sales of $65,000,operating Expenses of $21,300,depreciation

question 39

Multiple Choice

A firm has net sales of $65,000,operating expenses of $21,300,depreciation of $5,000,cost of goods sold of $36,500,and interest expense of $4,500.What is the operating margin?

• A) -2.8 percent
• B) 2.6 percent
• C) 3.4 percent
• D) 9.2 percent
• E) 10.3 percent

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Definitions:

Natural Monopolies

Industries or markets in which the production or supply of a good or service is most cost-effective when there is a single provider, due to high infrastructure or entry costs.

Government Regulated

Refers to activities, industries, or services that are controlled or supervised by government agencies to ensure compliance with laws and regulations.

Entire Industry

Refers to all the businesses and organizations involved in the production, distribution, and sale of goods and services within a particular sector.

Demand Curve

A graphical representation showing the relationship between the price of a goods or services and the quantity demanded.