Selected Financial Data for the Entertainment Division of Magic Enterprises

question 27

Essay

Selected financial data for the Entertainment Division of Magic Enterprises is as follows:
$$\begin{array} { | l | r r | } \hline \text { Sales } & \$ & 7,200,000 \\\hline \text { Operating income } & \$ & 1,440,000 \\\hline \text { Total assets } & \$ & 3,000,000 \\\hline \text { Current liabilities } & \$ & 800,000 \\\hline \text { Required rate af return } & & 8 \% \\\hline \text { Weighted average cost of capital } & & 6 \% \\\hline\end{array}$$
- What is the Entertainment Division's sales margin?
A.11.11%
B.20.00%
C.48.00%
D.240.00%

Identify inappropriate content for professional communication.

Understand the purpose and function of different types of professional letters (claim letters, inquiry letters).

Apply appropriate salutations and formats in professional correspondence.

Understand the role of memos and letters in electronic communication within professional settings.

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Definitions:

Machine-Hours

A measure of production time, representing the total hours machines are operated in the manufacturing process.

Overhead Cost

Indirect expenses related to the general operation of a company, including administrative and facility costs not directly tied to production.

Activity-Based Costing

A costing method that assigns costs to products based on the activities required to produce them, improving accuracy by identifying cost drivers.

Machine-Hours

A measure of production time, expressed in hours, that machinery is operating.