Question
Assume sales are $2,220; cost of goods sold is $1,055, general expenses are $630, depreciation expense is $210, and the tax rate is 35 percent.
Assume sales are $2,220; cost of goods sold is $1,055, general expenses are $630, depreciation expense is $210, and the tax rate is 35 percent. What is the firm's operating margin (EBIT/Sales) if the firm paid $40 in interest expense?
24.10%
none of the answers are correct
52.48%
22.30%
14.64%
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Managerial Accounting
Authors: James Jiambalvo
4th edition
9780470546888, 9780470333341, 470546883, 470333340, 978-0470578797
