The sales manager at Buff & Tuff Health Machines has just completed a sales presentation to staff

Question:

The sales manager at Buff & Tuff Health Machines has just completed a sales presentation to staff indicating that the firm will, from now on, pursue a product differentiation strategy. He notes that this should have the effect of increasing the company’s ratio with only a minor decrease in its profit margin. Does the sales manager’s presentation make sense? Why or why not?

Asset Turnover
Asset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio.