Profit margins-returns on sales based problem
Question:
Dental Delights has two divisions. Division A has a profit of $200,000 on sales of $4,000,000. Division B is only able to make $30,000 on sales of $480,000. Based on the profit margins (returns on sales), which division is superior?
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With major renovation, the company's payoff from a favorable market is $100,000, from an unfavorable market, $ -90,000
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Based on the profit margins (returns on sales), which division is superior?
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