Question: Moonitz Inc., a consumer products firm, is considering adding a data analytics program in which it can evaluate its customers, shopping transactions and other relevant
Moonitz Inc., a consumer products firm, is considering adding a data analytics program in which it can evaluate its customers, shopping transactions and other relevant customer data to craft individualized promotions and recommend additional product offerings.
Currently, Moonitz has $ million in annual sales, generating a PM of percent on sales and an ATO of Moonitz's marketing group believes the data analytics program will increase annual sales by $ million, with an additional investment in working capital of $ million to support the increased sales. Costs to run the data analytics program will reduce firmwide PM to percent.
Based solely on the above financial consideration, explain whether or not you would recommend management consider adding this new program.
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