Kragle Corporation reported the following financial data for one of its divisions for the year; average invested assets of $470,000; sales of $930,000; and income of $105,000. The investment center profit margin is:
A) 22.3%.
B) 447.6%.
C) 50.5%.
D) 197.9%.
E) 11.3%.

Question

Quizplus · Accepted Answer

The investment center profit margin is calculated by dividing the income by the sales. Here, $105,000 (income) divided by $930,000 (sales) equals 0.113, or 11.3%.

Kragle Corporation Reported the Following Financial Data for One of Its