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Start your free trialSarah Torres
1,821 PointsI don't understand what it is asking and what formula to use to find the answer.
It is asking about the SG&A margin contraction or expansion. What would I am I looking for in year 1 to 2? What method am I using to get an answer?
1 Answer
Jennifer Nordell
Treehouse TeacherHi there, Sarah Torres ! I received your request for assistance. I can tell you how I did it I took the SG&A of year and divided it by the total revenue for year 1 which gave me a margin (in percentage) of 7.66 percent. Then I did the same thing for Year 2 which gave me a percentage of 7.75 percent and the difference there is 0.09% but isn't in the range of anything in the answers.
So I tried something. I did the same thing for Year 3 which gave me a SGA margin of 7.91% and the difference between Year 2 SGA margin and Year 3 SGA margin results in a 0.16% expansion which leads me to believe there might be a typo in this question so I'm going to tag the brilliant Michael Watson to either confirm this or show us both what we did incorrectly
Hope this helps!
Sarah Torres
1,821 PointsSarah Torres
1,821 PointsThank you. I really appreciate the help!
Michael Watson
Treehouse TeacherMichael Watson
Treehouse TeacherHi Sarah Torres , I'm so sorry about that. Jennifer Nordell is correct. The typo in the quiz has been fixed.