The Electronics Division of Anton Company reports the following results for the current year: Anton Company has set a target return on investment (ROI) of 11% for the Electronics Division. The Electronic Division's margin is:
A) 11.25%.
B) 12%.
C) 66.7%.
D) 18%.

Question

The Electronics Division of Anton Company reports the following results for the current year:  Anton Company has set a target return on investment (ROI) of 11% for the Electronics Division. The Electronic Division's margin is:
A) 11.25%. 
B) 12%. 
C) 66.7%. 
D) 18%.

Quizplus · Accepted Answer

Margin = Operating income ÷ Sales
Margin = $144,000 ÷ $800,000 = 18%

The Electronics Division of Anton Company Reports the Following Results