Omega Health Products Inc. has two divisions. Division X has a profit of $450,000 on sales of $4,500,000. Division Y is able to make only $50,000 on sales of $500,000. Compute the profit margins (return on sales) for each division.
Omega Health Products Inc. has two divisions. Division X has a profit of $450,000 on sales of $4,500,000. Division Y is able to make only $50,000 on sales of $500,000. Compute the profit margins (return on sales) for each division.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
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Author:Don R. Hansen, Maryanne M. Mowen
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Chapter10: Decentralization: Responsibility Accounting, Performance Evaluation, And Transfer Pricing
Section: Chapter Questions
Problem 11E: Xenold, Inc., manufactures and sells cooktops and ovens through three divisions: Home, Restaurant,...
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Please provide the correct answer to this financial accounting problem using valid calculations.

Transcribed Image Text:Omega Health Products Inc. has two divisions. Division X has a profit
of $450,000 on sales of $4,500,000. Division Y is able to make only
$50,000 on sales of $500,000.
Compute the profit margins (return on sales) for each division.
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