Question

Apple Inc. reports the following for three of its geographic segments for a recent year. All numbers are in millions of dollars. ($millions) Americas Europe China Operating income $ 23,117 $ 13,025 $ 13,841 Sales 66,939 48,683 32,667 Compute profit margin for each division. (Round your answer to 1 decimal places.)

Answer 1

profit margin Americas = 34.53 %

profit margin Europe = 26.75 %

profit margin China = 42.37 %

Step-by-step explanation:

given data

Americas Operating income = $23,117

Europe Operating income = $13,025

China Operating income = $13,841

Americas Sales = 66,939

Europe Sales = 48,683

China Sales = 32,667

to find out

profit margin for each division

solution

we get here profit margin that is express as

profit margin =
`(operating\ income)/(net\ sale)` × 100 ................1

put here value we get

profit margin Americas =
`(23117)/(66939)` × 100

profit margin Americas = 34.53 %

and

profit margin Europe =
`(13025)/(48683)` × 100

profit margin Europe = 26.75 %

and

profit margin China =
`(13841)/(32667)` × 100

profit margin China = 42.37 %