(Answered)-Zylex Corporation has multiple factories across the United States. The upper management at Zylex... - (2025 Updated Original AI-Free Solution

Question

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?