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:

Product Differentiation

The method of making a product or service stand out from the competition in order to appeal more to a specific target group.

Narrow Market

A market segment characterized by a specific and often limited customer base, interests, or area of focus.

Cost Leadership

A competitive strategy where a company aims to become the lowest-cost producer in its industry or market.

Labor Specialization

The process of dividing work into unique tasks performed by different individuals, improving efficiency and expertise.