Question

A division reports the following figures: Sales = $14,000; Net income = $2,800; Average assets = $28,000. The division's profit margin is

Answer 1

The division's profit margin is 0.20.

What is the profit margin?

Profit margin is an example of a profitability ratio. Profitability ratios measures the efficiency with which a company generates profit from its asset

Profit margin = gross profit /  sales

2800 / 14,000 = 0.20

To learn more about financial ratios, please check: https://brainly.com/question/26092288

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