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Manufacture wanted to dive headlong into new market

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Reference no: EM132807474

Suppose that a manufacture wanted to dive headlong into a new market. For example, consider the MICROSOFT SURFACE tablet.

Naturally, one could expect a lower gross profit margin, considering aggressive (lower) pricing.

Now consider two ratios--fixed asset turnover and inventory turnover. What do you think would happen to those two ratios, when the manufacturer attempts to "buy market share?"

Reference no: EM132807474

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