Assume the Kingston Appliances division had the following results last year: . Net sales: $4,500,000 Operating income: $900,000 Average total assets: $6,200,000 Management's target rate of return: 16% What is the division's profit margin ratio?

Assume the Kingston Appliances division had the following results last year: . Net sales: $4,500,000 Operating income: $900,000 Average total assets: $6,200,000 Management's target rate of return: 16% What is the division's profit margin ratio?

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter10: Evaluating Decentralized Operations

Section: Chapter Questions

Problem 4BE: Profit margin, investment turnover, and ROI Briggs Company has operating income of 36,000, invested...

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Question

Solve this Accounting problem

Assume the Kingston Appliances division
had the following results last year:
. Net sales: $4,500,000
Operating income: $900,000
Average total assets: $6,200,000
Management's target rate of return: 16%
What is the division's profit margin ratio?

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