Cabal Products is a division of a major corporation. Last year the division had
ID: 2472267 • Letter: C
Question
Cabal Products is a division of a major corporation. Last year the division had total sales of $12,270,000, net operating income of $834,360, and average operating assets of $3,190,200. The company's minimum required rate of return is 12%.
6.8%
26.2%
56.7%
26.0%
Cabal Products is a division of a major corporation. Last year the division had total sales of $12,270,000, net operating income of $834,360, and average operating assets of $3,190,200. The company's minimum required rate of return is 12%.
The division's margin is closest to: (Round your answer to 1 decimal place.)Explanation / Answer
ANS-
Margin = Net operating income ÷ Sales
=834,360/12270000
=6.8%