Calculate Profit Margin for Division D - Accounting Example
The profit margin for Division D can be calculated as follows:
Profit = Sales - Cost of goods sold - Operating expenses Profit = $350,000 - $120,000 - $58,000 Profit = $172,000
Profit margin = (Profit / Sales) x 100% Profit margin = ($172,000 / $350,000) x 100% Profit margin = 49.1%
Therefore, the answer is (c) 49.1%.
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