Question
The following data relates to Logan Electric and its Light Bulb Division. Light Bulb Division sales $7,500,000 Light Bulb Division operating income $750,000 Light Bulb
The following data relates to Logan Electric and its Light Bulb Division.
| Light Bulb Division sales | $7,500,000 |
| Light Bulb Division operating income | $750,000 |
| Light Bulb Division total assets | $3,000,000 |
| Light Bulb Division current liabilities | $530,000 |
| Corporate target rate of return | 19% |
| Corporate weighted average cost of capital | 9% |
| Corporate effective tax rate | 25% |
What is the Light Bulb Division's sales margin?
A.
250.00%
B.
10.00%
C.
17.67%
D.
25.00%
Click to select your answer.
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Financial Reporting International Standards
Authors: Graham Eaton
1st Edition
0750662379, 978-0750662376
