Huntswell Corporation has two major divisions
Agricultural Products and Industrial Products. It provides the following information for the year.
Agriculture Division Industrial Division
Net sales $140,000 $1,250,000
Operating income $17,600 $218,000
Average assets $340,000 $5,500,000
Calculate the profit margin for the Industrial Division of the company. (Round your answer to two decimal places.)
A) 3.96%
B) 5.18%
C) 17.44%
D) 12.57%
C .C)
Calculation of profit margin:
Industrial division
Net sales $1,250,000
Operating income $218,000
Profit margin ($218,000 / $1,250,000 ) x 100 17.44%
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