Kurtz Logistics provides the following information
Operating income $1,600,000
Net sales $13,500,000
Average total assets $1,850,000
Management's target rate of return 20%
What is the company's profit margin ratio?
A) 13.7%
B) 11.9%
C) 86.5%
D) 1.1%
B .B) Profit margin ratio = Operating Income / Net Sales = $1,600,000 / $13,500,000 = 11.9%
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