Cabal Products is a division of a major corporation. Last year the division had
ID: 2478215 • Letter: C
Question
Cabal Products is a division of a major corporation. Last year the division had total sales of $20,070,000, net operating income of $1,063,710, and average operating assets of $4,415,400. The company's minimum required rate of return is 16%.
24.1%
5.3%
33.1%
22.0%
Cabal Products is a division of a major corporation. Last year the division had total sales of $20,070,000, net operating income of $1,063,710, and average operating assets of $4,415,400. The company's minimum required rate of return is 16%.
The division's margin is closest to: (Round your answer to 1 decimal place.)Explanation / Answer
Margin = Net operating Income/ Total sales
= 1,063,710/20,070,000
= 5.30%