Question - The Top Hat Division of Blandons Fine Menswear had the following results last year (in thousands)
Sales - $4,500,000
Operating income - $675,000
Total assets - $3,000,000
Current liabilities - $250,000
Management's target rate of return is 12% and the weighted average cost of capital is 9%.
What is the Top Hat Division's sales margin?
A) 22.50%
B) 5.56%
C) 15.00%
D) 150.00%