Use this information for ABC Corporation to answer the questions that follow.

ABC Corporation has three service departments with the following costs and activity base:

ABC has three operating divisions, Micro, Macro and Super. Their revenue, cost and activity information is as follows:

-The profit margin for Chicks is
A) 25%
B) 22%
C) 15%
D) 27.5%

Question

Use this information for ABC Corporation to answer the questions that follow.
​
ABC Corporation has three service departments with the following costs and activity base:
​
  ABC has three operating divisions, Micro, Macro and Super. Their revenue, cost and activity information is as follows:
​
 
-The profit margin for Chicks is
A) 25% 
B) 22% 
C) 15% 
D) 27.5%

Quizplus · Accepted Answer

The profit margin is calculated as (Profit / Sales) * 100. If the cost of chicks is given as $60 and they are sold for $80, the profit per chick is $20 ($80 - $60). The profit margin is ($20 / $80) * 100 = 25%.

Use This Information for ABC Corporation to Answer the Questions