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.

Question

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Asset intensity refers to the amount of assets required to generate sales. If DuPont has $0.68 in assets for every dollar in sales, it means for every $100 increase in sales, the firm would need $68 of additional assets, not $100.

Chemical Manufacturer DuPont Has Approximately $0