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)
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Chapter18: Pricing And Profitability Analysis
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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?
Transcribed Image Text: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?
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