Problem:
Low Carb Diet Supplement, Inc., has two divisions. Division A has a profit of $156,000 on sales of $2,010,000. Division B is only able to make $28,800 on sales of $329,000. Based on the profit margins (returns on sales), which division is superior?
Question 1: Compute the profit margin (return on sales) for Division A.
Question 2: Compute the profit margin (return on sales) for Division B.
Justify your answer.