Must pay taxes rate percent pretax operating income
SOLUTION
Operating income is the revenue minus all expenses other than depreciation.
Given:
Operating income = Revenue - (Expenses other than depreciation + Depreciation expense)
Operating income = $60 million - ($33 million + $5.0 million)
Profit Margin = ($22 million / $60 million) * 100
Profit Margin = 36.67%
