If income from operations for a division is $6,000,invested assets are $25,000,and sales are $30,000,the profit margin is 24%.

Name: If income from operations for a division is $6,000,invested assets are $25,000,and sales are $30,000,the profit margin is 24%.
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Question

Quizplus · Accepted Answer

The profit margin is calculated by dividing income from operations by sales.

Profit margin = ($6,000/$30,000) x 100% = 20%

Therefore, the statement is false. The profit margin is 20%, not 24%.

If Income from Operations for a Division Is $6,000,invested Assets