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A firm has net sales of $ 6 5 , 0 0 0 , operating expenses of $ 2 1 , 3 0 0 ,

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)9.2%
B)-2.8%
C)10.3%
D)2.6%
E)3.4%
Explain why the correct answer is E)

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