Principles of Managerial Accounting Web Summer 2018 Test: Exam 4/Final Exam This

Question

Principles of Managerial Accounting Web Summer 2018 Test: Exam 4/Final Exam This Question: 1 pt Justin Gladden & 7/27/18 10:46 AM Time Remaining: 01 37 17 Submit Test This Test: 35 pts possible 70135 (4 complete) ? Assume the Hiking Shoes division of the All About Shoes Corporation had the following results last year (in thousands). Management's target rate of return is 20% and the weighted average cost of capital is 5%. Its effective tax rate is 40%. Sales Operating income Total assets Current liabilities $6,000,000 2,400,000 3,500,000 770,000 What is the division's sales margin? OA. 171.43% OB. 68.57% ??. 40.00% OD, 22 00%

Explanation / Answer

Answer - (C) 40.00%

Explanation :

Sales margin = Operating Income / Sales

= $2,400,000 / $6,000,000 = 0.4 or 40%

"It would be appreciated if you give your feedback"

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.