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sales of $2,010,000. Division B is able to make only $28,000 on sales of $329,000. a. Compute the profit margins (return on sales) for each

  1. sales of $2,010,000. Division B is able to make only $28,000 on sales of $329,000.

a. Compute the profit margins (return on sales) for each division. (2 marks) b. Based on the profit margins (returns on sales), compare Division A to Division B and indicate which division is superior? (3 marks)

  1. ABC Travel Company has AED 500,000 in assets and AED 300,000 of debt. It reports net income of AED 100,000. What is its Return on Equity? (2marks)

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