Use the Information Below to Answer the Following Question(s)

question 28

Multiple Choice

Use the information below to answer the following question(s) :
The following data relates to the Miracle Corporation and its Toy Division.

-What is the Toy Division's profit margin?

• A) 6%
• B) 24%
• C) 30%
• D) 400%

---

Definitions:

Net Sales

The amount of sales generated by a company after deducting returns, allowances for damaged or missing goods, and discounts.

Average Total Assets

This is a measure used to evaluate a company's asset efficiency by calculating the average total assets over a specific period.

Straight-line Method

An approach to depreciation that distributes the total cost of an asset evenly across its expected lifespan.

Salvage Value

The predicted leftover value of an asset following the end of its usable period.