The Pastry Division of Dream Bread has invested capital of $1,300,000.During the past year, the Pastry Division reported sales of $1,200,000 and earned $400,000 of NOPAT.How much profit did the Pastry Division generate on each revenue dollar earned by the division?

Question

Quizplus · Accepted Answer

The profit margin is calculated by dividing NOPAT by sales. $400,000 (NOPAT) / $1,200,000 (sales) = 0.3333 or 33.3%.

The Pastry Division of Dream Bread Has Invested Capital of $1,300,000.During