Which division is superior? Vikas Packaging Ltd. has twodivisions. Division X has a profit of$172,000 on sales of $3,250,000.Division Y is only able to make$41,500 on sales of $410,000.Based on the profit margins (returnson sales), which division is superior?

Profit Margin=Profit/Sales×100Division XProfit: $172,000Sales: $3,250,000Profit Margin for Division…

Answered: Vikas Packaging Ltd. has two divisions.…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter7: Variable Costing For Management analysis

Section: Chapter Questions

Problem 16E

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Vikas Packaging Ltd. has two divisions. Division X has a profit of $172,000 on sales of $3,250,000. Division Y is only able to make $41,500 on sales of $410,000. Based on the profit margins (returns on sales), which division is superior?