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In the answer it says …… operating margin of 2.3%. Then
The catering business would show a loss of $39m. I couldn’t understand how it is calculated from the given data.Thank you for your kind explanation in advance.
BizuayehuRev 245 x Current op margin of 6.5% = 15.925 = op profit
If the cost od reorganisation of 55 (note 6) had been charged against this, then the loss would be
15.925 – 55 = 39.075.
Dear Ken Garrett,
Thank you so much for your swift replay and clear explanation how to reach that figure.
Bizuayehu
From Ethiopia
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