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Question 1 (of 9) Save & Exit Submit 1. value 2.77 points Low Carb Diet Supplement, Inc., has two divisions. Division A has a
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Answer #1

a. Profit margin = Net income / Sales

Profit margin(Divison A) = $176,000 / $2,490,000 = 0.0707 or 7.07%

Profit margin(Divison A) = $25,800 / $451,000 = 0.0572 or 5.72%

b. Division A is superior.

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