Music City had profit of $43,000,net sales of $380,500 and average total assets of $220,000.Its profit margin and total asset turnover were respectively

Question

Quizplus · Accepted Answer

Profit margin = (Net profit / Net sales) x 100%
= (43,000 / 380,500) x 100%
= 11.3%

Total asset turnover = Net sales / Average total assets
= 380,500 / 220,000
= 1.73

Therefore, the correct answer is A) 11.3%; 1.73.

Music City Had Profit of $43,000,net Sales of $380,500 and Average