An Owner of an Archery Shooting Gallery Calculates He Has

question 26

Multiple Choice

An owner of an archery shooting gallery calculates he has invested $450,000 into the business.He wants to determine if his investment has been worthwhile.What financial ratio should he review?

• A) total asset turnover
• B) return on equity
• C) operating profit margin
• D) financial leverage

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Definitions:

Mark-up

Increment on the buying price of products targeted to offset operational costs and profits.

Selling Price

The price at which a product or service is sold to the consumer.

Mercola

A brand and website known for its health-based products and controversial wellness information.

Break-even

The point in business where revenues equal expenses, resulting in no net loss or gain.