Division Y Has Generated Sales Revenue of $260,000 and Achieved

Multiple Choice

Division Y has generated sales revenue of $260,000 and achieved operating income of $18,500 using $20,000 of invested assets.If management desires a minimum rate of return of 10%, the profit margin would be:

A) 19.5%.
B) 14.4%.
C) 10.2%.
D) 7.1%.