The A corporation has an operating profit margin of 20%, operating exp

The A corporation has an operating profit margin of 20%, operating expenses of $500,000, and
financing costs of $15,000. Therefore,

A) the corporation’s net profit margin is greater than 20%.
B) the corporation’s gross profit margin is greater than 20%.
C) the corporation’s gross profit margin is equal to 20% because gross profit is not affected by
operating expenses or financing costs.
D) the corporation’s gross profit margin is less than 20%.

ANSWER

B