Ask Question
6 February, 08:31

Selma Inc. reported the following results from last year's operations: Sales $ 13,800,000 Variable expenses 9,950,000 Contribution margin 3,850,000 Fixed expenses 3,022,000 Net operating income $ 828,000 Average operating assets $ 6,000,000

Last year's margin was closest to: Multiple Choice

78.1%

6.0%

13.8%

27.9%

+4
Answers (1)
  1. 6 February, 09:26
    0
    6%

    Explanation:

    Given that,

    Sales = $ 13,800,000

    Variable expenses = 9,950,000

    Contribution margin = 3,850,000

    Fixed expenses = 3,022,000

    Net operating income = $ 828,000

    Average operating assets = $ 6,000,000

    Last year's margin:

    = (Net income : Sales) * 100

    = ($828,000 : $13,800,000) * 100

    = 6%

    Therefore, the last year's margin was closest to 6%.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Selma Inc. reported the following results from last year's operations: Sales $ 13,800,000 Variable expenses 9,950,000 Contribution margin ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers