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Income Statement for Company XYZ, Inc.
Revenue | $1,000,000 |
Costs of Goods Sold | $500,000 |
Labor | $300,000 |
General & Admin. Expenses | $50,000 |
Operating Earnings | $150,000 |
According to the formula, Operating Margin is:-
This means that for every $1 in sales, the Company XYZ makes $0.15 in operating earnings.
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