The Pasta Division of Whole Grain Corporation Had Sales of $5,500,000

question 86

Multiple Choice

The Pasta Division of Whole Grain Corporation had sales of $5,500,000 and operating income of $1,375,000 last year. The total assets of the Pasta Division were $2,750,000, while current liabilities were $340,000. Whole Grain Corporation's target rate of return is 18%, while its weighted average cost of capital is 15%. The effective tax rate for the company is 40%. What is the Pasta Division's sales margin?

• A)33.00%
• B)25.00%
• C)6)18%
• D)50.00%

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Definitions:

Stressor

Any biological, chemical, physical, or psychological factor that causes stress to an organism, potentially leading to disease or harm.

Steady-State Condition

A situation in a dynamic system where all components are in balance and remain constant over time despite ongoing processes.

Thermoregulate

The ability of an organism to keep its body temperature within certain boundaries, even when the surrounding temperature is very different.

Shock

Shock is a critical condition brought on by the sudden drop in blood flow through the body, leading to failure of the circulatory system to maintain adequate blood flow, often resulting in damage to multiple organs.