Division A of Chacha Company has sales of $140,000, cost of goods sold of $83,000, operating expenses of $43,000, and invested assets of $150,000. What is the profit margin for Division A?
A) 11.1%
B) 10.0%
C) 9.0%
D) 0.90%

Question

Quizplus · Accepted Answer

Profit Margin = (Sales - Cost of Goods Sold - Operating Expenses) / Sales
= (140,000 - 83,000 - 43,000) / 140,000
= 14,000 / 140,000
= 0.1 or 10.0%

Division a of Chacha Company Has Sales of $140,000, Cost