Question: The Top Hat Division of Blandon's Fine Menswear had the following results last year (in thousands). Sales $4,500,000 Operating income $675,000 Total assets $3,000,000 Current liabilities $250,000 Management's target rate of return is 12% and the weighted average cost of capital is 9%. a. What is the Top Hat Division's sales margin? b. What is the Top Hat Division's capital turnover?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter9: Responsibility Accounting And Decentralization
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Question:
The Top Hat Division of Blandon's Fine Menswear had the following results last year (in
thousands).
Sales
$4,500,000
Operating income $675,000
Total assets
$3,000,000
Current liabilities $250,000
Management's target rate of return is 12% and the weighted average cost of capital is
9%.
a. What is the Top Hat Division's sales margin?
b. What is the Top Hat Division's capital turnover?
Transcribed Image Text:Question: The Top Hat Division of Blandon's Fine Menswear had the following results last year (in thousands). Sales $4,500,000 Operating income $675,000 Total assets $3,000,000 Current liabilities $250,000 Management's target rate of return is 12% and the weighted average cost of capital is 9%. a. What is the Top Hat Division's sales margin? b. What is the Top Hat Division's capital turnover?
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