Cabal Products is a division of a major corporation Last yea

Cabal Products is a division of a major corporation. Last year the division had total sales of $13,420,000, net operating Income of $1,261,480, and average operating assets of $2,684,000. The company\'s minimum required rate of return is 15%. The division\'s margin is closest to: (Round your answer to 1 decimal place.) 62.7% 9.4% 47.0% 20.0%

Solution

correct option is \"B\" -9.4%

Divisison margin = operating income /sales

               = 1261480/13420000

                = .094 or 9.4%