Question

If the interest cost rises, what would be its impact on the operating margin

Answer 1

Answer:

If your net operating income increases as a percentage of net sales, your business turns a higher profit margin on its revenues. This situation occurs when you lower expenses and generate the same revenue or when you increase expenses at a slower rate than a corresponding increases in sales.

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Answer 2

Answer -

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• An operating margin, operating earnings is EBIT, or operating earnings, is revenue minus cost of What Does the Operating Margin Tell You.
• An operating margin is an important measurement of how margin in order to pay for its fixed costs, such as interest.
• Operating margin is a profitability ratio measuring revenue after covering operating and non-operating expenses of a business

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