Beak Industries is a division of a major corporation. Last year the division had total sales of $10,600,000, net operating income of $1,070,600, and average operating assets of $4,000,000.
-The division's margin is closest to:
A) 37.7%
B) 26.8%
C) 47.8%
D) 10.1%

Question

Quizplus · Accepted Answer

The margin is calculated as net operating income divided by total sales. So, $1,070,600 / $10,600,000 = 0.101, or 10.1%.

Beak Industries Is a Division of a Major Corporation