Answer:
A. 18.00%
Explanation:
In this question, first we have to apply the return on investment formula so that the net income value could find out which is shown below:
Return on investment = Net Income ÷ Average Operating Assets × 100
28.8% = Net Income ÷ $259,000
So, the Net income would be
= $74,592
Now the margin would be
= Net income ÷ Sales × 100
= $74,592 ÷ $414,400 × 100
= 18%
