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 by subtracting the total expenses from the revenues and dividing the result by the revenues, then multiplying by 100 to get a percentage. 
Margin for Division Z = (880,000 - 820,000) / 14,500,000 x 100% = 4%
Therefore, the best choice is C, which is the closest option to 4%.

The Following Information Pertains to the Three Divisions of Merrymount