The following information pertains to the three divisions of Merrymount Company: What is the margin for Division Z?
A) 1.5%
B) 100.0%
C) 6.0%
D) 15.0%

Question

The following information pertains to the three divisions of Merrymount Company:  What is the margin for Division Z?
A) 1.5% 
B) 100.0% 
C) 6.0% 
D) 15.0%

Quizplus · Accepted Answer

The margin for Division Z can be calculated as (Profit ÷ Revenue) x 100%. From the information given, the profit of Division Z is $3 million and the revenue is $50 million. Therefore, the margin for Division Z is (3 ÷ 50) x 100% = 6.0%.

The Following Information Pertains to the Three Divisions of Merrymount