Question: Average assets are equal to $700 000. ROA is equal to 40%. Assets turnover is 2. Income tax rate t=30%. The fraction of non-operating profit

Average assets are equal to $700 000. ROA is equal to 40%. Assets turnover is 2. Income tax rate t=30%. The fraction of non-operating profit in total profit is 15%. Find operating margin (return on sales using operating profit).

(answer is 24%)

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