Asked by Yomairi Santana on May 06, 2024
Verified
Othman Inc.has a $800,000 investment opportunity with the following characteristics: 
The margin for this investment opportunity is closest to:
A) 50.0%
B) 45.0%
C) 5.0%
D) 55.0%
Margin
A financial metric indicating the percentage of revenue that remains after subtracting the cost of goods sold; a measure of profitability.
Investment Opportunity
A financial asset or an avenue to invest money with a potential financial return.
- Carry out computations and explicate primary financial ratios and performance measures, covering margin, turnover, and residual income.
Verified Answer
KB
Kaetlin BrettMay 08, 2024
Final Answer :
C
Explanation : 
Margin = Net operating income ÷ Sales = $112,000 ÷ $2,240,000 = 5.0%
Margin = Net operating income ÷ Sales = $112,000 ÷ $2,240,000 = 5.0%
Learning Objectives
- Carry out computations and explicate primary financial ratios and performance measures, covering margin, turnover, and residual income.