5)

The Top Hat Division of Blandons Fine Menswear had the following results last year (in thousands)

Sales - $4,500,000

Operating income - $675,000

Total assets - $3,000,000

Current liabilities - $250,000

Management's target rate of return is 12% and the weighted average cost of capital is 9%.

What is the Top Hat Division's sales margin?

A) 22.50%

B) 5.56%

C) 15.00%

D) 150.00%