Low Carb Diet Supplement Inc. has two divisions. Division A has a profit of $306,000 on sales of $2,410,000. Division B is able to make only $28,700 on sales of $354,000.

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

______________________________

| | Profit Margin |

|Division A | |%|

|Division B | |%|

b.Based on the profit margins (returns on sales), which division is superior?

Multiple choice:

o Division B

o Division A