Cabell Products is a division of a major corporation. Last year the division had total sales of $17,540,000, net operating income of $1,438,280, and average operating assets of $4,735,800. The company's minimum required rate of return is 13%.The division's margin is closest to:
A) 8.2%
B) 30.4%
C) 63.1%
D) 27.0%

Question

Quizplus · Accepted Answer

Margin = Net operating income / Average operating assets * 100= 1,438,280 / 4,735,800 * 100= 0.3036 * 100= 30.36%

Cabell Products Is a Division of a Major Corporation