Question

TB MC Qu. 09-137 (Algo) Kragle Corporation reported the following...

Kragle Corporation reported the following financial data for one of its divisions for the year, average assets of $570,000; sales of $1,030,000; and income
of $125,660. The investment center profit marginis:
Multiple Choice

Answer 1

To calculate the investment center profit margin for Kragle Corporation's division, we can use the formula:
Profit Margin = Income / Sales

So, the investment center profit margin for this division is:
Profit Margin = $125,660 / $1,030,000 = 0.122 or 12.2%.

Therefore, the correct answer is:
Option C) 12.2%