Answer:
The correct answer is option b.
Explanation:
Jane enjoys Diet Coke so much that she consumes one can every day.
She likes gourmet cheese as well but she consumes it sometimes.
If the price of Diet Coke rises, Jane decreases her consumption by only a very small amount.
But if the price of gourmet cheese rises, Jane decreases her consumption by a lot.
This is because, for Jane, diet coke is a necessity but cheese is a luxury good. So, when price increases the demand for diet coke will decrease by a little amount and demand for cheese will decrease by a great amount.
Answer:
Return on Assets = 159.52%
Profit Margin = 11.75%
Asset Turnover Ratio = 1.36 times
Explanation:
The computation of return on assets, profit margin, and asset turnover ratios is shown below:-
a. Return on assets
Average Total Assets = Assets in the beginning + Assets at the end ÷ 2
= ($80 million + $88 million) ÷ 2
= $168 ÷ 2
= $84 million
Return on Assets = Annual Net Income ÷ Average Total assets
= $13.4 million ÷ $84 million
= $159.52 million
b. Profit Margin
Profit Margin = Net Income ÷ Net Sales
= $13.4 million ÷ $114 million
= 11.75%
c. Assets turnover ratio
Average Total Assets = Assets in the beginning + Assets at the end ÷ 2
= ($80 million + $88 million) ÷ 2
= $168 ÷ 2
= $84 million
Asset Turnover Ratio = Net Sales ÷ Average Total assets
= $114 million ÷ $84 million
= 1.36 times
A discount on the retail price of something allowed or agreed between traders or to a retailer by a wholesaler.
Answer: The answer is B
Explanation: Took the test
