The Appliance Division
The Appliance Division of Electrotech Corporation reported the following results for a recent year
$\begin{array}{ll}
\text {Sales } & \$ 9,000,000 \
\text {Expenses } & 7,500,000\\
\text { Total assets(1/1) } &6,000.000\
\text { Total assets(12/31) } & 6,200.000
\end{array}$

Refer to the Appliance Division
What was the profit margin for The Appliance Division?

Question

The Appliance Division
The Appliance Division of Electrotech Corporation reported the following results for a recent year
$\begin{array}{ll}
\text {Sales } & \$ 9,000,000  \
\text {Expenses } &  7,500,000\\
\text { Total assets(1/1) } &6,000.000\
\text { Total assets(12/31) } & 6,200.000
\end{array}$

Refer to the Appliance Division
What was the profit margin for The Appliance Division?

Quizplus · Accepted Answer

The profit margin is calculated as (Net Income / Sales) * 100. Net Income is Sales - Expenses = $9,000,000 - $7,500,000 = $1,500,000. Thus, profit margin = ($1,500,000 / $9,000,000) * 100 = 16.67%, which rounds to 17%.

The Appliance Division the Appliance Division of Electrotech Corporation Reported

The Appliance Division
the Appliance Division of Electrotech Corporation Reported