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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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Craig Baugh

Craig Baugh

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® 2024 Level II Curriculum, Volume 2, Module 17.