1. Assume the Mold Division of SPKY had the following results last year (in thousands). Management's target rate of return is 10% and the weighted average cost of capital is 7%. Its effective tax rate is 30%.

   Sales	$6,000,000
   Operating income	900,000
   Total assets	3,000,000
   Current liabilities	750,000

   What is the SPKYs mold division's profit margin?

   a.		200.00%
   b.		15.00%
   c.		25.00%
   d.		30.00%