Oceanic Industries is a division of a large corporation. Last year, the division had total sales of $18,500,000, net operating income of $450,000, and average operating assets of $6,000,000. The company's minimum required rate of return is 10%. The division's margin is closest to: a. 24.3% b. 17.5% c. 2.43% d. 3.2%

Survey of Accounting (Accounting I)
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ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter14: Decentralized Operations
Section: Chapter Questions
Problem 3SEQ: Division A of Kern Co. has sales of $350,000, cost of goods sold of $200,000, operating expenses of...
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Oceanic Industries is a division of a large corporation. Last year,
the division had total sales of $18,500,000, net operating income of
$450,000, and average operating assets of $6,000,000. The
company's minimum required rate of return is 10%.
The division's margin is closest to:
a. 24.3%
b. 17.5%
c. 2.43%
d. 3.2%
Transcribed Image Text:Oceanic Industries is a division of a large corporation. Last year, the division had total sales of $18,500,000, net operating income of $450,000, and average operating assets of $6,000,000. The company's minimum required rate of return is 10%. The division's margin is closest to: a. 24.3% b. 17.5% c. 2.43% d. 3.2%
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