Selected financial data for The Portland Porcelain Works Coffee Mug Division is as follows: What is The Portland Porcelain Works Coffee Mug Division sales margin?
A)57.60%
B)18.00%
C)320.00%
D)7.83%

Question

Selected financial data for The Portland Porcelain Works Coffee Mug Division is as follows:  What is The Portland Porcelain Works Coffee Mug Division sales margin?
A)57.60% 
B)18.00% 
C)320.00% 
D)7.83%

Quizplus · Accepted Answer

To calculate the sales margin, we first need to calculate the gross profit, which is the revenue minus the cost of goods sold (COGS):
Gross Profit = Revenue - COGS
= $900,000 - $738,000
= $162,000

Then, we can calculate the sales margin as a percentage of the revenue:
Sales Margin = Gross Profit / Revenue x 100%
= $162,000 / $900,000 x 100%
= 18%

Therefore, the correct answer is B) 18.00%.

Selected Financial Data for the Portland Porcelain Works Coffee Mug