A Corporation's Operating Profit Margin Is Equal to

question 75

Multiple Choice

A corporation's operating profit margin is equal to

• A) Net Income divided by Sales.
• B) EBIT divided by Sales.
• C) EBIT divided by Net Income.
• D) Sales divided by EBIT.

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Definitions:

Domestic Shortage

A Domestic Shortage occurs when the quantity demanded of a good or service in a country exceeds the quantity supplied at the current market price, leading to scarcity.

World Price

The price at which goods are traded on the global market.

Supply Curves

Graphical representations showing the relationship between the price of a good and the quantity of that good that suppliers are willing to sell.

Demand Curves

A graphical representation that shows the relationship between the price of a good and the quantity demanded by consumers.