Builtrite's upper management has been comparing their books to industry standards and came up with the following question: Why is our operating profit margin higher than the industry standard and our net profit margin lower than the industry standard? a. Builtrite has lower than average operating expenses
b. Builtrite has higher than average operating expenses
c. Builtrite has lower than average interest expense
d. Builtrite has higher than average interest expense

There are reasons for increase in operating margin.  Builtrite has higher than average operating expenses.

Operating profit margin is said to be reduce when compared to the industry standard and also net profit margin is higher than the industry standard, when we looking into the non operating costs such as  interest and other expenditures.

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B.) Builtrite has higher than average operating expenses

Explanation:

When we subtract the cost of goods sold from the net sales, what we have is called gross profit. A high gross profit could be that products are being sold at a higher price

If your gross profit margin is higher than industrial average you will have more chances of generating net profit. That is if your expenses are confined to industry average levels.

Operating profit is known as pretax profit. To get this, you subtract operating expenses from gross profit.

Its margin is = to operating income divided by the total revenue. A low operating margin even in the presence of higher gross profit is due to the fact that the company is not able to control its operating expenses or simply out, they are getting higher operating expenses when compared to industry.

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know