Homework SourseBaxter Bros is a manufacturing company that has two major di
Baxter Bros. is a manufacturing company that has two major divisions. Both divisions have required a significant investment, and management wants to compare their performance. Below is information related to the two divisions.
What is the return on sales for Division A?
| Division A | Division B | |
| Sales | $30,000 | $40,000 |
| Expenses | $25,000 | $35,000 |
| Asset Investment | $100,000 | $100,000 |
Solution
Return on sales for Division A = (Sales-Expenses)/Sales = (30000-25000)/30000= 16.67%
