Figure 2
The following information was reported on two projects of Dartmouth, SA.:
-Refer to Figure 2. Dartmouth, SA.'s margin for the prior year was

A) 18.0%
B) 7.2%
C) 4.0%
D) 2.5%

Question

Figure 2
The following information was reported on two projects of Dartmouth, SA.:
-Refer to Figure 2. Dartmouth, SA.'s margin for the prior year was

A) 18.0% 
B) 7.2% 
C) 4.0% 
D) 2.5%

Quizplus · Accepted Answer

Looking at Figure 2, we can see that the margin for the prior year is equal to the Operating Income divided by the Total Revenue. In this case, the Operating Income is given as $36,000 and the Total Revenue is given as $500,000. Therefore, the margin for the prior year is:

Margin = 36,000/500,000 x 100 = 7.2%

Therefore, the best choice is B.

Figure 2 The Following Information Was Reported on Two Projects of Dartmouth