Low Carb Diet Supplement Inc. has two divisions. Division A has a profit of $291,000...
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Low Carb Diet Supplement Inc. has two divisions. Division A has a profit of $291,000 on sales of $2,930,000. Division B is able to make only $32,900 on sales of $370,000. 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 % % b. Based on the profit margins (returns on sales), which division is superior? Division B Division A Database Systems is considering expansion into a new product line. Assets to support expansion will cost $990,000. It is estimated that Database can generate $1,990,000 in annual sales, with an 9 percent profit margin. What would net income and return on assets (investment) be for the year? (Input your return on assets answer as a percent rounded to 2 decimal places.) Net income Return on assets %
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