A Clothing Company Would Like to Purchase a New Piece

Multiple Choice

A clothing company would like to purchase a new piece of equipment and has been debating the purchase of either (a) a new sewing machine that would improve the existing department or (b) an embellisher that would afford the company the opportunity to add new and unique clothing to their existing lines. They gathered the following prospective information: Which machine choice yields the highest profit margin and by how much? (Do not round intermediate calculations.)

A) The embellisher has a 2.12% higher profit margin than the sewing machine.
B) The embellisher has a 5.39% higher profit margin than the sewing machine.
C) The sewing machine has a 2.12% higher profit margin than the embellisher.
D) The sewing machine has a 5.39% higher profit margin than the embellisher.