Assume the Air Conditioning division of the General Appliance Corporation had the following results last year (in thousands). Management's target rate of return is 15% and the weighted average cost of capital is 10%. Its effective tax rate is 25%.

Sales	$13,000,000
Operating income	1,950,000
Total assets	3,000,000
Current liabilities	830,000

What is the division's sales margin?

A.

65%

B.

27.67%

C.

15%

D.

433.33%