Selected financial data for the Photocopies Division of Elizabeth's Business Machines is as follows: What is the Photocopier Division's sales margin?
A)200.00%
B)70.00%
C)5)47%
D)35.00%

Question

Selected financial data for the Photocopies Division of Elizabeth's Business Machines is as follows:  What is the Photocopier Division's sales margin?
A)200.00% 
B)70.00% 
C)5)47% 
D)35.00%

Quizplus · Accepted Answer

The sales margin is calculated as (gross profit/sales) x 100%. 
In this case, the gross profit is $28,000 ($84,000 - $56,000). 
The sales are $80,000 ($56,000 + $24,000). 
So, the sales margin is (28,000/80,000) x 100% = 35.00%. 
Therefore, the correct answer is D.

Selected Financial Data for the Photocopies Division of Elizabeth's Business