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The Suspenders Division of T's Fine Menswear had the following results last year. Sales $5,000,000 Operating income $550,000 Total assets $1,000,000 Current liabilities $240,000 Management's
The Suspenders Division of T's Fine Menswear had the following results last year.
| Sales | $5,000,000 |
| Operating income | $550,000 |
| Total assets | $1,000,000 |
| Current liabilities | $240,000 |
Management's target rate of return is
12%
and the weighted average cost of capital is
8%.
What is the Suspenders Division's sales margin?
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