Question: Watson Data Systems is considering expanding into a new product line. New assets to support expansion will cost $500,000. It is estimated that Watson can

Watson Data Systems is considering expanding into a new product line. New assets to support expansion will cost $500,000. It is estimated that Watson can generate $1.2 million in annual sales, with a 6 percent profit margin. What would net income and return on assets (investment) be for the year?

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Watson Data Systems Net income Sales profit margin 1200000 6 72000 ... View full answer

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