Question

Koovuq131 is a division of a large corporation. Data concerning the most recent period appears below:

Sales $18,120,000
Net operating income $1,177,800
Average operating assets $4,450,000

What is Koovuq131's margin (closest to)?

Answer 1

0.065

Step-by-step explanation:

Koovuq131 has sales of $18,120,000

The net operating income is $1,177,800

The average operating assets is $4,450,000

Therefore the margin can be calculated as follows

= Net operating income/sales

= 1,177,800/18,120,000

= 0.065

Hence the margin is closest to 0.065