Assume the Apple Division of the Gala Company Had the Following

Multiple Choice

Assume the Apple division of the Gala Company had the following results last year (in thousands) . Managements required rate of return is 10% and the weighted average cost of capital is 8%. Its effective tax rate is 30%.
$$\begin{array} { | l | r | } \hline \text { Sales } & \$ 3,000,000 \\\hline \text { Operating income } & \$ 500,000 \\\hline \text { Total assets } & \$ 4,500,000 \\\hline \text { Current liabilities } & \$ 300,000 \\\hline\end{array}$$ What is Apple division's profit margin?

A) 11.11%
B) 16.67%
C) 66.67%
D) 60%