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1. Profitability ratios (L03-2 @) Low Carb Diet Supplement Inc. has two divisions. Division A...

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Accounting

1. Profitability ratios (L03-2 @) Low Carb Diet Supplement Inc. has two divisions. Division A has a profit of $156,000 on sales of $2,010,000. Division B is able to make only $28,800 on sales of $329,000. Based on the profit margins (returns on sales), which division is superior?

2.Profitability ratios (L03-2 [) Database Systems is considering expansion into a new product line. Assets to support expansion will cost $380,000. It is estimated that Database can generate $1,410,000 in annual sales, with an 8 percent profit margin. What would net income and return on assets (investment) be for the year?

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6. Profitability ratios (LO3-2 Dr. Zhivago Diagnostics Corp.'s income statement for 20X1 is as follows: a. Compute the profit margin for 20X1. b. Assume that in 20X2, sales increase by 10 percent and cost of goods sold increases by 20 percent. The firm is able to keep all other expenses the same. Assume a tax rate of 30 percent on income before taxes. What is income after taxes and the profit margin for 20X2

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