Question

Apple Inc. reports the following for three of its geographic segments for a recent year. All numbers are in millions of dollars. ($millions) Americas Europe China Operating income $ 23,117 $ 13,025 $ 13,841 Sales 66,939 48,683 32,667 Compute profit margin for each division. (Round your answer to 1 decimal places.)

Answer 1

Answer:

profit margin Americas = 34.53 %

profit margin Europe = 26.75 %

profit margin China = 42.37 %

Explanation:

given data

Americas Operating income = $23,117

Europe Operating income = $13,025

China Operating income = $13,841

Americas Sales = 66,939

Europe Sales = 48,683

China Sales = 32,667

to find out

profit margin for each division

solution

we get here profit margin that is express as

profit margin = $\frac{operating\ income}{net\ sale}$ × 100   ................1

put here value we get

profit margin Americas = $\frac{23117}{66939}$ × 100

profit margin Americas = 34.53 %

and

profit margin Europe = $\frac{13025}{48683}$ × 100

profit margin Europe = 26.75 %

and

profit margin China = $\frac{13841}{32667}$ × 100

profit margin China = 42.37 %