Question
Mason Corporation had
in invested assets, sales of
, operating income amounting to
, 000, and a desired minimum return on investment of
.
The profit margin (rounded to one decimal place) for Mason Corporation is
a.
b.
c.
d.
The profit margin (rounded to one decimal place) for Mason Corporation is
a.
b.
c.
d.
Ask by Lambert Vaughan. in the United States
Mar 25,2025
Upstudy AI Solution
Tutor-Verified Answer
Answer
The profit margin for Mason Corporation is approximately 17.7%.
Solution
Step 1: Calculate the profit margin
The profit margin is calculated using the formula:
Step 2: Substitute the given values
Step 3: Calculate the ratio
Step 4: Convert the ratio to a percentage
Final Answer:
Answered by UpStudy AI and reviewed by a Professional Tutor
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Bonus Knowledge
To calculate the profit margin for Mason Corporation, we use the formula:
Plugging in the values from the question:
Thus, the profit margin for Mason Corporation is
, which means the correct answer is c. 17.7%.
Now, while we’re diving into this financial data, keep in mind that understanding profit margins is crucial. They not only indicate how much profit your business makes relative to sales, but they also provide an insight into operational efficiency. The higher the profit margin, the more money a company retains on each dollar of sales!
For anyone involved in business, the ability to accurately analyze profit margins and other financial metrics is key. Investing in learning practical applications—like budgeting, pricing strategies, and expense management—can drastically enhance decision-making. So grab that balance sheet and get ready to dig into those numbers!