Selected Financial Data for the Entertainment Division of Magic Enterprises

Essay

Selected financial data for the Entertainment Division of Magic Enterprises is as follows:
$$\begin{array} { | l | r r | } \hline \text { Sales } & \$ & 7,200,000 \\\hline \text { Operating income } & \$ & 1,440,000 \\\hline \text { Total assets } & \$ & 3,000,000 \\\hline \text { Current liabilities } & \$ & 800,000 \\\hline \text { Required rate af return } & & 8 \% \\\hline \text { Weighted average cost of capital } & & 6 \% \\\hline\end{array}$$
- What is the Entertainment Division's sales margin?
A.11.11%
B.20.00%
C.48.00%
D.240.00%