Huntswell Corporation Has Two Major Divisions: Agricultural Products and Industrial

Multiple Choice

Huntswell Corporation has two major divisions: Agricultural Products and Industrial Products. It provides the following information for the year 2014. $$\begin{array} { | l | c | c | } \hline & \text { Agriculture Division } & \text { Industrial Division } \\\hline \text { Sales revenue } & \$ 140,000 & \$ 1,040,000 \\\hline \text { Operating income } & \$ 16,400 & \$ 218,400 \\\hline \text { Average assets } & \$ 300,000 & \$ 5,540,000 \\\hline\end{array}$$ Calculate the profit margin ratio for the Industrial Division of the company.

A) 10.5%
B) 11.1%
C) 21.0%
D) 11.7%