Asked by Morgan Kollman on May 12, 2024
Verified
Selma Inc.reported the following results from last year's operations: 
Last year's margin was closest to:
A) 78.1%
B) 6.0%
C) 13.8%
D) 27.9%
Margin
The difference between selling price and cost of goods sold, often expressed as a percentage of sales, highlighting profitability.
- Perform calculations and interpretations of critical financial ratios and performance measures, like margin, turnover, and residual income.
Verified Answer
QJ
Qiana JohnsonMay 19, 2024
Final Answer :
B
Explanation :
Margin = Net operating income ÷ Sales = $828,000 ÷ $13,800,000 = 6.0%
Learning Objectives
- Perform calculations and interpretations of critical financial ratios and performance measures, like margin, turnover, and residual income.