If operating income for a division is $6,000, invested assets are $25,000, and sales are $30,000, the profit margin calculated would be 20%.

Name: If operating income for a division is $6,000, invested assets are $25,000, and sales are $30,000, the profit margin calculated would be 20%.
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Question

Quizplus · Accepted Answer

Profit margin is calculated by dividing operating income by sales, so $6,000/$30,000 = 0.2 or 20%. Invested assets are not used in the profit margin calculation.

If Operating Income for a Division Is $6,000, Invested Assets