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Company X reports $200,000 in sales of Widgets in 2019. The Costs of Goods sold for these Widgets is $90,000. All other operating expenses (SG&A, R&D, Depreciation, Other, etc.) are $50,000. Which of the following is the correct representation of the profitability ratios:   Gross Profit Margin 45%, Operating Margin 30%.   Gross Profit Margin 55%, Operating Margin 30%.   Gross Profit Margin 45%, Operating Margin 20%.   Gross Profit Margin 55%, Operating Margin 20%.

Company X reports $200,000 in sales of Widgets in 2019. The Costs of Goods sold for these Widgets is $90,000. All other operating expenses (SG&A, R&D, Depreciation, Other, etc.) are $50,000. Which of the following is the correct representation of the profitability ratios:   Gross Profit Margin 45%, Operating Margin 30%.   Gross Profit Margin 55%, Operating Margin 30%.   Gross Profit Margin 45%, Operating Margin 20%.   Gross Profit Margin 55%, Operating Margin 20%.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Company X reports $200,000 in sales of Widgets in 2019. The Costs of Goods sold for these Widgets is $90,000. All other operating expenses (SG&A, R&D, Depreciation, Other, etc.) are $50,000. Which of the following is the correct representation of the profitability ratios:

 

  1. Gross Profit Margin 45%, Operating Margin 30%.

     

  2. Gross Profit Margin 55%, Operating Margin 30%.

     

  3. Gross Profit Margin 45%, Operating Margin 20%.

     

  4. Gross Profit Margin 55%, Operating Margin 20%.

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