Puffin Turnovers,Inc

question 95

Multiple Choice

Puffin Turnovers,Inc.'s fixed asset turnover was 0.9 while Muffin Tops,Inc.'s fixed asset turnover was 0.6.Which of the following statements about Puffin compared with Muffin is correct?

• A)Puffin generated more sales per dollar of fixed assets.
• B)Puffin has greater depreciation expense.
• C)Puffin has more fixed assets.
• D)Puffin has greater sales.

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Definitions:

Production

Any good or service for which people are willing to pay.

Kegs

Large barrels used to store and serve beer or other liquids, often used in the context of breweries or social gatherings.

Absolute Advantage

The ability of an entity to produce a good or service more efficiently than its competitors.

Comparative Advantage

The ability of an individual, company, or country to produce a particular good or service at a lower opportunity cost than others.