Solved: Calculate the profit margin-return on sales for firm, Accounting Basics

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Calculate the profit margin-return on sales for firm

Solve the below problem:

Q: Profitability ratios Low Carb Diet Supplement, Inc., has two divisions. Division A has a profit of $100,000 on sales of $2,000,000. Division B is only able to make $25,000 on sales of $300,000. Calculate the profit margin (return on sales) for each firm. Youre your work. Based on the profit margins (returns on sales), which division is superior?

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Accounting Basics: Calculate the profit margin-return on sales for firm

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Accounting Basics: Calculate the profit margin-return on sales for firm

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