Question

Luther's Operating Margin for the year ending December 31, 2008 is closest to: Group of answer choices 0.5% 0.7% 5.4% 6.8%

Answer 1

the operating margin is 5.4%

Step-by-step explanation:

The computation of the operating margin is shown below:

As we know that

Operating Margin = Operating Income ÷ Sales

= $31.3 ÷ $578.3

= 5.4%

Hence, the operating margin is 5.4%

It could be determined by dividing the operating income from the sales