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 is calculated as (Profit / Net Sales) * 100 = ($43,000 / $380,500) * 100 = 11.3%. Total asset turnover is calculated as Net Sales / Average Total Assets = $380,500 / $220,000 = 1.73.

Music City Had Profit of $43,000, Net Sales of $380,500