Calculate the percentage of net income to sales


Response to the following problem:

Dinning Corporation has two divisions. In the most recent year, the Sintering Division reported sales of $150,000 and an asset turnover ratio of 3.0. The division's controller reported to headquarters that the rate of return on average invested assets was 18.0 percent.

Calculate the percentage of net income to sales (i.e., the margin). Do not include a percent sign as part of your answer. Round to the nearest whole number, if required.

 

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Accounting Basics: Calculate the percentage of net income to sales
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