The Top Hat Division of Blandon's Fine Menswear had the following results last year (in thousands).

Management's target rate of return is 12% and the weighted average cost of capital is 9%.
What is the Top Hat Division's sales margin?

Question

The Top Hat Division of Blandon's Fine Menswear had the following results last year (in thousands).

Management's target rate of return is 12% and the weighted average cost of capital is 9%.
What is the Top Hat Division's sales margin?

Quizplus · Accepted Answer

C)
Sales margin = Operating income/Sales
= 675,000/4,500,000 = 15 %

The Top Hat Division of Blandon's Fine Menswear Had the Following