(Solved by Humans)-Zylex Corporation has multiple factories across the United States. The upper management at Zylex...

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Academic Level: Undergrad. (yrs 3-4)

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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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(Solved by Humans)-Zylex Corporation has multiple factories across the United States. The upper management at Zylex...


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