Cabal Products is a division of a major corporation. Last year the division had
ID: 2471444 • Letter: C
Question
Cabal Products is a division of a major corporation. Last year the division had total sales of $21,720,000, net operating income of $1,346,640, and average operating assets of $4,778,400. The company's minimum required rate of return is 15%.
6.2%
28.2%
41.3%
22.0%
Cabal Products is a division of a major corporation. Last year the division had total sales of $21,720,000, net operating income of $1,346,640, and average operating assets of $4,778,400. The company's minimum required rate of return is 15%.
The division's margin is closest to: (Round your answer to 1 decimal place.)Explanation / Answer
Total Sales is $21,720,000
Net operating income is $1,346,640
Division margin is the net operating income divided by the total sales
$1,346,640/ 21,720,000
= 6.2%