Division 3 of Baritune Enterprises Reported Sales of $820,000, NOPAT

question 38

Multiple Choice

Division 3 of Baritune Enterprises reported sales of $820,000, NOPAT totaling $61,500, interest expense of $8,000, and invested capital totaling $512,500.Its income tax rate is 30 percent.As it pertains to evaluating investment centers, how much is Division 3's profit margin?

• A)12.0%
• B)7.5%
• C)8.2%
• D)1.6%