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Default Problem with plot

I have a scatter chart with a single plot that gets its data from the formula
=E7/C7, which works great. But when C7 is blank or a zero, you get the
#DIV/0! error. So I tried to clean it up and use =IF(C7=0,"0",E7/C7). But now
it plots it as a 1 instead of a 0. When I revert back to the =E7/C7, it
correctly plots it as a 0. Why would it plot it as a 1 when the false value
makes it a zero?
 
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