Evergreen Corporation has two major divisions: Agricultural Products and Industrial Products. It provides the following information for the year. Agriculture Division Industrial Division Net sales $ 150 comma 000 $ 1 comma 750 comma 000 Operating income $ 16 comma 000 $ 218 comma 000 Average assets $ 340 comma 000 $ 56 comma 600 comma 000 Calculate the profit margin ratio for the Industrial Division of the company. (Round your answer to two decimal places.)

Profit margin ration is the the percentage of sales that a business earns as profit. In the context of a division, the higher the figure, the better and the more profitable the operation of the division. The profit margin ratio is computed as follows:

Profit margin ratio = Net operating profit/ Sales× 100

Industrial profit margin ratio

Net operating margin - 218,000

Net Sales - 1,750,000

Profit margin ratio

= 218,000/1,750,000 × 100

= 12.5%

abdulmajeedabiodunac abdulmajeedabiodunac · Answer 2 · 2020-04-04T05:10:13+02:00

Answer:

The question is missing below options:

A. 5.45%

B. 13.43%

C. 12.00%

D. 4.27%

E.12.46%

The correct option is E,12.46%

Explanation:

Profit margin ratio shows the percentage of return on net sales.The formula is given by :

Profit margin ratio=operating income/net sales*100%

For the industrial division, the following details are available:

operating income is $218,000

net sales is $1,750,000

profit margin ratio=$218,000/$1,750,000*100%

profit margin ratio is 12.46%