Exhibit 11-2
Manford Inc -Refer to Exhibit 11-2

Exhibit 11-2
Manford Inc.has two divisions -Refrigerators and Dish Washer.
$\begin{array}{c}\text {Manford Company}\\\text {Segmented Income Statements}\\\text {For the Current Fiscal Year Ended December 31}\\\\\begin{array}{lcc}&\text { Refrigerator } & \text { Dish Washer } \\&\text { Division } & \text { Division } \\ \text { Sales } & \$ 10,000,000 & \$ 5,400,000 \\ \text { Cost of goods sold } & 4,200,000 & 2,660,000 \\ \text { Gross margin } & 5,800,000 & 2,740,000 \\ \text { Allocated overhead (from corporate) } & 940,000 & 740,000 \\ \text { Selling and administrative expenses } & 780,000 & 360,000 \\ \text { Operating income } & 4,080,000 & 1,640,000 \\\text { Income tax expense }(45 \%) & 1,836,000 & 738,000 \\ \text { Net income } & \$ 2.244,000 & \$ 902.000 \\\end{array}\end{array}$
-Refer to Exhibit 11-2.Using the segmented income statements,what is the profit margin ratio for the Refrigerator Division (to the nearest hundredth of a percent) ?

A) 22.44%
B) 40.80%
C) 58.00%
D) 42.00%
E) None of the answer choices is correct.