Yellow Hat Company Has a Sales Margin of 10%, a Target

question 7

Multiple Choice

Yellow Hat Company has a sales margin of 10%, a target rate of return of 2.6%, and capital turnover of 2.6. Its operating income is $58,000. The sales in dollars for Yellow Hat Company may be closest to

• A)$580,000.
• B)$22,308.
• C)$5800.
• D)$150,800.