Healthy Pro Nutrition Co. has two divisions. Division X has a profit of $360,000 on sales of $3,600,000. Division Y generates a profit of $45,000 on sales of $500,000. a. Compute the profit margins (return on sales) for each division. b. Based on the profit margins (returns on sales), which division is superior?
Healthy Pro Nutrition Co. has two divisions. Division X has a profit of $360,000 on sales of $3,600,000. Division Y generates a profit of $45,000 on sales of $500,000. a. Compute the profit margins (return on sales) for each division. b. Based on the profit margins (returns on sales), which division is superior?
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter18: Pricing And Profitability Analysis
Section: Chapter Questions
Problem 37P
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