<span>A company can have a product that they want a single customer to be able to use and profit from, they may sell that product to that customer at a lower price, allowing them to purchase more, and blocking out competitors with higher pricing.</span>
<u>The reason that Pablo Picasso, become wealthy during his lifetime and the artist, Vincent van Gogh, remain poor his entire life:</u>
Pablo Picasso and Vincent van Gogh had more features in common. They had unanimously indistinct style of arts which had become immediately identifiable.
In spite of all that, Picasso died as a rich man owning an estate which is estimated at nearly 750 million dollar whereas Van Gogh died as a pauper.
Studies claim that the reason behind this would be that, Van Gogh remained to be a loner and socially inactive. He was depending on his brother to meet the social world and in contrast Picasso was a charismatic active member in various social clubs where her had multiple number of contacts and connections.
It's been said that Pablo Picasso was a hub who had a vast network of social lines and Vincent Van Gogh was a silent or solitary node.
But now, the paintings of both the greatest artists were well spoken and sell for more than 100,000,000 US Dollars.
Answer:
a. Division A = 5.80 %, Division B = 8.95 %
b. Division B is superior. Because, it generates a greater profit margin per each sale made.
Explanation:
<u> a. Compute the profit margins</u>
Profit margin = Profit / Sales × 100
Division A = $134,000 / $2,310,000 × 100
= 5.80 % (2 decimal places.)
Division B = $33,400 / $373,000 × 100
= 8.95 % (2 decimal places.)
<u> b. Based on the profit margins</u>
Division B is superior as it generates a greater profit margin per each sale made.
