A fresh fruit wholesaler has high sales volume, with most selling prices not greatly exceeding costs. This wholesaler would normally be expected to have ____.
A) high profit margin and high asset turnover
B) low profit margin and low asset turnover
C) low profit margin and high asset turnover
D) high profit margin and low asset turnover

Question

Quizplus · Accepted Answer

A fresh fruit wholesaler with high sales volume and low selling prices compared to costs would have a low profit margin. However, due to the high sales volume, the asset turnover would be high. Therefore, the correct choice is C.

A Fresh Fruit Wholesaler Has High Sales Volume, with Most