Huntswell Corporation Has Two Major Divisions-Agricultural Products and Industrial Products

question 109

Multiple Choice

Huntswell Corporation has two major divisions-Agricultural Products and Industrial Products. Data for the year just finished is as follows:
$\begin{array}{|l|r|r|} \hline& \text { Agriculture Division } & \text { Industrial Division } \\\hline \text { Sales revenue } & \$ 140,000 & \$ 1,040,000 \\\hline \text { Operating income } & \$ 16,400 & \$ 220,000 \\\hline \text { Average assets } & \$ 300,000 & \$ 5,540,000 \\\hline \text { Target rate of return } & 4.0 \% & 4.0 \% \\\hline\end{array}$
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For the Industrial Division, how much is the profit margin?

• A) 21.2%
• B) 19.3%
• C) 17.4%
• D) 16.7%

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Definitions:

Inferential Statistics

The branch of statistics that aims to draw conclusions about a population based on a sample.

Variables

Any traits, factors, or quantities that can assume different values in a given study.

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Statistical Techniques

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