Question

"Atlas Company provided the following information for last year: Operating income $ 92,000 Sales 235,000 Beginning operating assets 410,000 Ending operating assets 440,000 Calculate Atlas's margin for last year. (Note: Round answer to two decimal places.)"

Answer 1

Answer:

The margin of Atlas's for the last year is 0.39

Explanation:

The formula to compute the margin is as:

Margin = Operating Income / Sales

Where

Operating income is $92,000

Sales is $235,000

Putting the values above in the formula:

Margin = $92,000 / $235,000

= 0.39

Hence, the margin of the Atlas Company will be 0.39 for the last year.