Practical Management Science
Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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1. Suppose a company wishes to increase their return of capital employed (ROCE) to 15%. Currently, their ROCE is 10% and their working capital turnover rate is 1,5. However, they believe it would be difficult do much about their yearly turnover and average-tied up capital (assets).

a. What is the company’s current profit margin?
b. What profit margin is the company aiming for?

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