Chapter 14, Problem 14.4.4C

To determine

Concept Introduction:

Profit Margins: It is a measure which is generally used by the organization to find out the best department in the organization in terms of profit. To calculate the profit margins divide the profits with sales.

Return on investment: In this we divide the total return or profit with the investment into the assets of organization. It is the best way of calculating the % of return in the business.

To Indicate:

Tell us the better method of evaluating the performance of the divisions and why the president is tense about the performance of the organization?