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: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter11: Performance Evaluation And Decentralization

Section: Chapter Questions

Problem 27E: Margin, Turnover, Return on Investment, Average Operating Assets Elway Company provided the...

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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?

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