Division D of Saunders Company has sales of $350,000, cost of goods sold of $120,000, operating expenses of $58,000, and invested assets of $150,000.
-The profit margin for Division D is
A)42.9%
B)83.4%
C)49.1%
D)65.7%

Question

Division D of Saunders Company has sales of $350,000, cost of goods sold of $120,000, operating expenses of $58,000, and invested assets of $150,000.​
-The profit margin for Division D is
A)42.9%
B)83.4%
C)49.1%
D)65.7%

Quizplus · Accepted Answer

The profit margin is calculated as (Net Income / Sales) * 100. Net Income for Division D is Sales - Cost of Goods Sold - Operating Expenses = $350,000 - $120,000 - $58,000 = $172,000. Therefore, the profit margin is ($172,000 / $350,000) * 100 = 49.1%.

Division D of Saunders Company Has Sales of $350,000, Cost