(Solved by Humans)-Zylex Corporation has multiple factories across the United States. The upper management at Zylex...
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Zylex Corporation has multiple factories across the United States. The upper management at Zylex evaluates each factory based on the capital turnover ratio from the DuPont system. Below is infor- mation for the factory in Pennsylvania for the past year. Year 2 Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,000,000 Operating expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 640,000 Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,200,000 Accumulated depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 220,000 Compute the capital turnover ratio using (1) total assets and (2) assets net of depreciation. Which investment base will the Pennsylvania factory manager prefer and why?
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This question was answered on: 10 May, 2025
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