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Problem:

Low Carb Diet Supplement, Inc., has two divisions. Division A has a profit of $156,000 on sales of $2,010,000. Division B is only able to make $28,800 on sales of $329,000. Based on the profit margins (returns on sales), which division is superior?

Question 1: Compute the profit margin (return on sales) for Division A.

Question 2: Compute the profit margin (return on sales) for Division B.

Justify your answer.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91145648

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