Overhead (or Sales, General and Administrative Expense) problem.

                                                                                   1992       1993    1994

   Gross Profit Margin                                              40%        39%    41%

   Operating Margin (NOI/Sales)                             15%        10%      5%

What is happening to S,G and A (or overhead expenses)? Please set up an illustration assuming sales of 1.00 dollar each year just as you did in problem number one. You need to show cost of goods and S,G and A (or overhead expenses) as pennies per dollar of sales.

Answer rating: 100% (QA)

The concept is based on calculation of Net operating profit Sale COGS Gross Profit Overhe... View the full answer