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Basic Question 1 of 10
Operating margin is calculated as:
A. (Net Income / Sales) * 100
B. (Operating Income / Sales) * 100
C. (Sales / Operating Income) * 100
D. (Gross Profit / Sales) * 100
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I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz
Learning Outcome Statements
evaluate whether economies of scale are present in an industry by analyzing operating margins and sales levels;
demonstrate methods to forecast cost of goods sold and operating expenses;
demonstrate methods to forecast nonoperating items, financing costs, and income taxes;
CFA® 2025 Level I Curriculum, Volume 2, Module 17.