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DIVISION Cams a prontmar Sinu ICH WOU rect a 270 mas over the prior year, TO WHICCO Ce pronts. U doesn't initially sound like much,
DIVISION Cams a prontmar Sinu ICH WOU rect a 270 mas over the prior year, TO WHICCO Ce pronts. U doesn't initially sound like much, but last year the division's profits exceeded $1 million. The following key financial outcomes were projected for his division at the beginning of this year. Sales Operating income Operating assets (a) $13,513,500 David was feeling cautiously optimistic, as everything was on track by November-that is, until a crucial piece of equipment broke down and needed a significant overhaul. David could believe his luck. was afraid this unexpected asset replacement was going to throw off his positive performance metrics. Profit margin 1,115,000 David 9,009,000 Assume the equipment overhaul cost is $118,000; $9,000 of depreciation expense associated with this investment will be taken this year. Does this change David's division's profit margin if all else continues as expected through the end of the year? (Round answer to 4 decimal places, e.g. 0.1526.) exceed the target profit margin
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