Baad Industries is a division of a major corporation. Last year the division had total sales of $20,440,000, net operating income of $1,860,040, and average operating assets of $7,000,000. The division's margin is closest to:
A)9.1%
B)34.2%
C)26.6%
D)43.3%

Question

Quizplus · Accepted Answer

The margin is calculated as net operating income divided by total sales. So, $1,860,040 / $20,440,000 = 0.091 or 9.1%.

Baad Industries Is a Division of a Major Corporation