Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Swank Clothiers had sales of $ 4 4 4 , 0 0 0 and cost of goods sold of $ 2 9 6 , 0

Swank Clothiers had sales of $444,000 and cost of goods sold of $296,000.
a. What is the gross profit margin (ratio of gross profit to sales)?
Note: Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.
Low Carb Diet Supplement Incorporated has two divisions. Division A has a profit of $133,000 on sales of $2,010,000. Division B is able to make only $25,600 on sales of $300,000.
a. Compute the profit margins (return on sales) for each division.
Note: Input your answers as a percent rounded to 2 decimal places.
\table[[,Profit Margin],[Division A,%],[Division B,%]]
b. Based on the profit margins (returns on sales), which division is superior?
Division A
Division B
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Survey of Accounting

Authors: Thomas Edmonds, Christopher, Philip Olds, Frances McNair, Bor

4th edition

77862376, 978-0077862374

More Books

Students also viewed these Accounting questions