Sales $100,000 minus COS $40,000 minus operating expenses $15,000 = $45,000 of operating profit. This is 45% of sales, calculated as $45,000 ÷ $100,000 = .45 or 45%.
This answer includes both interest expense and tax expense in the calculation of operating profit margin and neither of them should not be included in operating profit margin.
This answer includes interest expense in the calculation of operating profit margin and interest expense should not be included in operating profit margin.
This answer does not take into account the operating expenses, which should be included in the calculation of operating profit margin.
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