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(11) Sacha works for an organization that follows a decentralized model. Erin, the production manager of her business unit has come to Sacha to
(11) Sacha works for an organization that follows a decentralized model. Erin, the production manager of her business unit has come to Sacha to discuss the possibility of purchasing a new piece of equipment. Erin indicated that this new equipment could generate $23,500 of sales, and the expenses (after depreciation) to support it would be 70% of the new sales. After speaking to a supplier, Erin learns that the new equipment can be purchased for $15,750. What are the Profit Margin and the Investment Turnover for the new equipment? A) Profit Margin: 0.30, Investment Turnover: 1.492 B) Profit Margin: 0.70, Investment Turnover: 1.044 C) Profit Margin: 1.044, Investment Turnover: 0.70 D) Profit Margin: 1.492, Investment Turnover: 0.30 y-to-day
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