McCourty Enterprises has a return on assets of 7%. If it has $2.5 million in total assets and a total asset turnover of 1.5, it follows that the firm must have a net profit margin of
A) 10.5%.
B) 6.3%.
C) 5.4%.
D) 4.67%.

Question

Quizplus · Accepted Answer

The Answer of McCourty Enterprises has a return on assets of 7%. If it has $2.5 million in total assets and a total asset turnover of 1.5, it follows that the firm must have a net profit margin of
A) 10.5%.
B) 6.3%.
C) 5.4%.
D) 4.67%.

McCourty Enterprises Has a Return on Assets of 7