Question: For example, consider the following results for a supermarket and an electronics store, each with $10 million of sales revenue. The EBIT margin for the

For example, consider the following results for a supermarket and an electronics store, each with $10 million of sales revenue.Supermarket Electronics (000 omitted) Sales revenue $10,000 $10,000 EBIT 500 2,000 Permanent

The EBIT margin for the supermarket is onlycapital 2,000 8,000

and for the electronics store it isimage text in transcribed

The ratio for the electronics store is much [lower / higher].

Supermarket Electronics (000 omitted) Sales revenue $10,000 $10,000 EBIT 500 2,000 Permanent capital 2,000 8,000

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