The Electronics Division of Anton Company Reports the Following Results

question 89

Multiple Choice

The Electronics Division of Anton Company reports the following results for the current year: $\begin{array}{lr}\text { Revenues } & \text { \$ 508,000 } \\\text { Operating expenses } & \text { \$ } 456,000 \\\text { Operating income } & \text { \$ } 52,000 \\\text { Operating assets } & \$ 620,000\end{array}$ Anton Company has set a target return on investment (ROI) of 14% for the Electronics Division. The Electronic Division's margin is:

• A) 8.39%.
• B) 11.40%.
• C) 15.85%.
• D) 10.24%.

---

Definitions:

Consolidated Balance Sheet

A financial statement that shows the combined assets, liabilities, and equity of a parent company and its subsidiaries.

Land

An asset representing the surface of the earth owned by an individual or organization, not including the buildings or resources above or below it.

Impairment Loss

A reduction in the recoverable value of an asset that is greater than its carrying amount on the balance sheet.

Effective Tax Rate

The average percentage of income that an individual or corporation pays in taxes, considering various deductions and credits.