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Use this information for Chicks Corporation to answer the question that follow. Chicks Corporation had $1,100,000 in invested assets, sales of $1,210,000, income from operations amounting to $302,500, and a desired minimum return of 15%. The profit margin for Chicks is
a. 15%
b. 25%
c. 27.5%
d. 22%

Respuesta :

Answer:

Option B.

Explanation:

Given information:

Assets = $1,100,000

Sales = $1,210,000

Income or profit = $302,500

Formula for profit margin is

[tex]\text{Profit margin}=\dfrac{Profit}{Sales}\times 100[/tex]

Substitute the given values in the above formula.

[tex]\text{Profit margin}=\dfrac{302500}{1210000}\times 100[/tex]

On simplification we get

[tex]\text{Profit margin}=25\%[/tex]

The profit margin for Chicks is 25%.

Therefore, the correct option is B.

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