Question

Chemical manufacturer DuPont has approximately $0.68 in assets for every dollar in sales. According to asset intensity, for every $100 increase in sales, the firm would need about $100 of additional assets. Group of answer choices True False

Answer 1

It is True, based on asset intensity, that for every $100 increase in sales, Chemical manufacturer DuPont would need about $100 in additional assets.

What is asset intensity?

The asset or capital intensity is a measure of the amount of assets needed to produce some dollars of sales revenue.

The asset intensity ratio is obtained by dividing the total assets by sales.

Thus, it is True, based on asset intensity, that for every $100 increase in sales, Chemical manufacturer DuPont would need about $100 in additional assets.

Learn more about the capital intensity ratio at brainly.com/question/13887805

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