Athens Corporation desires a 12% ROI on all operations. The following information was available for the company in 2012: $\begin{array}{ll}
\text { Sales } & \$ 14,000 \
\text { Operating Net Income } & \$ 2,800\
\text { Investment turnover }&.5
\end{array}$ What is the corporation's margin?
A) 10%
B) 12%
C) 15%
D) 20%

Question

Quizplus · Accepted Answer

The margin is calculated as Operating Net Income divided by Sales. Here, $ \frac{2800}{14000} = 0.2 $ or 20%.