Low Carb Diet Supplement Inc. has two divisions. Division A has a profit of $176,000 on sales of $2,490,000. Division B is able to make only $25,800 on sales of $451,000. a. Compute the profit margins (return on sales) for each division. (Input your answers as a percent rounded to 2 decimal places.) Division A Division B Profit Margin % %

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 7BE: Margin of safety Jorgensen Company has sales of 380,000,000, and the break-even point in sales...
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Low Carb Diet Supplement Inc. has two divisions. Division A has a profit of $176,000 on sales of $2,490,000. Division B is able to
make only $25,800 on sales of $451,000.
a. Compute the profit margins (return on sales) for each division. (Input your answers as a percent rounded to 2 decimal places.)
Division A
Division B
Profit Margin
%
96
%
Transcribed Image Text:Low Carb Diet Supplement Inc. has two divisions. Division A has a profit of $176,000 on sales of $2,490,000. Division B is able to make only $25,800 on sales of $451,000. a. Compute the profit margins (return on sales) for each division. (Input your answers as a percent rounded to 2 decimal places.) Division A Division B Profit Margin % 96 %
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