International Boot Company has operating income of $80,000, invested assets of $500,000, and sales of $1,525,000.
-The profit margin for International Boot Company is
A)33.3%
B)5.2%
C)16.0%
D)19.1%

Question

Quizplus · Accepted Answer

The profit margin is calculated as (Operating Income / Sales) * 100. So, for International Boot Company, it's ($80,000 / $1,525,000) * 100 = 5.2%.

International Boot Company Has Operating Income of $80,000, Invested Assets