Answer:
The margin needed is 17%
Explanation:
The computation of the margin is shown below:
As we know that
Margin = Net operating income ÷ sales × 100
where,
net operating income is
= ROI × average operating assets
= 30.60% × $277,000
= $84,762
Now the margin is
= $84,762 ÷ $498,600 × 100
= 17%
Hence, the margin needed is 17%
We simply applied the above formula so that the correct value could come
And, the same is to be considered
