Compute the profit margin for each division

Assignment Help Financial Management

Reference no: EM131971989

Low Carb Diet Supplement, Inc., has two divisions. Division A has a profit of $230,000 on sales of $2,120,000. Division B is able to make only $34,700 on sales of $381,000.

Compute the profit margins (return on sales) for each division. (Input your answers as a percent rounded to 2 decimal places.)

Division A= ______%

Division B= ______%

Polly Esther Dress Shops Inc. can open a new store that will do an annual sales volume of $1,220,400. It will turn over its assets 2.7 times per year. The profit margin on sales will be 7 percent.

What would net income and return on assets (investment) be for the year? (Input your return on assets answer as a percent rounded to 2 decimal places.)

Net Income=

Return on Assets= __________ %

Reference no: EM131971989

Questions Cloud

What would you expect companies to do over the next year : With lower interest rates, what would you expect companies to do in terms of additional borrowing or their existing debt at the time?

Confidence interval for the mean of a population : Find a 95% confidence interval for the mean of a population if s = 5.26, x¯ = 70.1 and n = 49.

Why you would invest or not invest in stocks or bonds : Explain a bond feature and explain the importance of yield-to-maturity. Explain stocks and preferred stocks. Also, explain why you would invest.

Evidence to conclude that the average score : If the national average was 600, is there enough evidence to conclude that the average score has decreased? Use a p-value and 5% significance.

Compute the profit margin for each division : Division A has a profit of $230,000 on sales of $2,120,000. Division B is able to make only $34,700 on sales of $381,000.

Determine the total purchases on account during september : During September, the company paid total cash of $13,275 on accounts payable. Determine the total purchases on account during September.

What amount should be included in the project analysis : What amount should be included in the project analysis for the last year of the project in regards to the net working capital?

Examining the econmic probabilities : The expected return on a stock computed using economic probabilities is: guaranteed to equal the actual average return on the stock for the next five years.

Confidence intervals are used in the real world : Give several examples of when confidence intervals are used in the real world. Be sure to include the confidence interval that would need to be calculated

User Account

All Pages