- CFA Exams
- CFA Level I Exam
- Topic 5. Equity Valuation
- Learning Module 22. Industry and Company Analysis
- Subject 2. Income Statement Modeling: Operating Costs and Non-Operating Costs
CFA Practice Question
Financial results for three major players of local grocery market in a city ($ millions):
Revenue | 25 | 22 | 30
Operating margin | 12% | 15% | 18%
Companies | A | B | C
Revenue | 25 | 22 | 30
Operating margin | 12% | 15% | 18%
Based on the data presented, which company most likely has economies of scale?
A. Company A.
B. Company B.
C. Company C.
Explanation: It has the highest sales and highest operating margin.
User Contributed Comments 0
You need to log in first to add your comment.