A Firm Has Net Sales of $65,000, Operating Expenses of $21,300

Multiple Choice

A firm has net sales of $65,000, operating expenses of $21,300, depreciation of $5,000, cost of goods sold of $37,000, and interest expense of $3,500. What is the operating margin?

A) -2.8 percent
B) 2.6 percent
C) 4.9 percent
D) 9.2 percent
E) 10.3 percent