Kurtz Logistics provides the following information: $$\begin{array} { | l | r | }
\hline \text { Operating income } & \$ 1,550,000 \
\hline \text { Net sales } & \$ 15,000,000 \
\hline \text { Average total assets } & \$ 1,950,000 \
\hline \text { Management's target rate of return } & 30 \% \
\hline
\end{array}$$ What is the company's profit margin ratio?
A) 13.0%
B) 10.3%
C) 79.5%
D) 27.9%

Question

Kurtz Logistics provides the following information: $$\begin{array} { | l | r | } 
\hline \text { Operating income } & \$ 1,550,000 \
\hline \text { Net sales } & \$ 15,000,000 \
\hline \text { Average total assets } & \$ 1,950,000 \
\hline \text { Management's target rate of return } & 30 \% \
\hline
\end{array}$$ What is the company's profit margin ratio?
A) 13.0%
B) 10.3%
C) 79.5%
D) 27.9%

Quizplus · Accepted Answer

The profit margin ratio is calculated as (Operating Income / Net Sales) * 100 = ($1,550,000 / $15,000,000) * 100 = 10.3%.

Kurtz Logistics Provides the Following Information What Is the Company's Profit Margin Ratio? A) 13

Kurtz Logistics Provides the Following Information What Is the Company's Profit Margin Ratio?
A) 13