The Bedding Division of Homestore Corporation had sales of $7,000,000 and operating income of $1,190,000 last year. The total assets of the Bedding Division were $2,000,000, while current liabilities were $320,000. Homestore Corporation's target rate of return is 17%, while its weighted average cost of capital is 7%. The effective tax rate for the company is 40%. What is the Bedding Division's sales margin?

a. 24%

b. 59.5%

c. 4.57%

d. 17%