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ACME Transmission Inc. supplies transmissions to Ford for their popular Model T. Automobile sales fell significantly last year, but now, at the beginning of 1934, GDP is growing again and Ford is forecasting an increase in automobile sales of 19.32% over the coming year. You want to forecast ACME's operating profit margin (EBIT/Sales) for the coming year. Use the data in the table to estimate ACME's operating profit margin for 1934.
Selected Financial Information ACME Transmissions Inc.
1933 (Actual)
1934 (Forecast)
Sales
$1,527
$1,822
EBIT
$55
Operating Profit Margin
3.60%
Degree Operating Leverage
2.37
Express your answer in percentage form rounded to one decimal point.
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