Profit margins-returns on sales based problem
Question:
Dental Delights has two divisions. Division A has a profit of $200,000 on sales of $4,000,000. Division B is only able to make $30,000 on sales of $480,000. Based on the profit margins (returns on sales), which division is superior?
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With major renovation, the company's payoff from a favorable market is $100,000, from an unfavorable market, $ -90,000
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Classify the direct materials, direct labor, factory overhead, or selling and administrative expense.
List the types of information you'll need (e.g., market size, rate of growth, number of competitors, etc.) and provide good detail.
Based on the profit margins (returns on sales), which division is superior?
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