Criticize the following statement: “In our business, we maxi-mize profits by closing any department that does not show a responsibility margin ratio of at least 15 percent.”

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 44MCQ: When a Dupont analysis reveals that a company has much higher than average asset turnover and much...
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Criticize the following statement: “In our business, we maxi-
mize profits by closing any department that does not show a

responsibility margin ratio of at least 15 percent.”

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