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    Question

    Operating Margin can be numerically expressed in the form of following equation:-

    A [(Net profits – operating expenses) / Revenue] Correct Answer Incorrect Answer
    B [(Gross profits – operating expenses) / Revenue] Correct Answer Incorrect Answer
    C [(Net profits – operating revenue) / Revenue] Correct Answer Incorrect Answer
    D [(Gross profits – non-operating expenses) / Revenue] Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Operating Margin determines the relationship between the profit of a company after paying its variable cost except interest and tax and the sales of an entity.

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