If Sales for 2015 Are $4,000,000 and for 2016 Are

question 9

Multiple Choice

If sales for 2015 are $4,000,000 and for 2016 are $6,000,000, and total assets at the end of 2015 are $1,000,000 and at the end of 2016 are $2,000,000, the asset turnover period ratio for 2016 is:

• A) 91 days.
• B) 146 days.
• C) 109 days.
• D) 1460 days.

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Definitions:

Bundled Pricing

A pricing strategy whereby companies package a set of goods or services together and then sell them for a lower price than if they were to be sold separately.

Lower Price

A pricing strategy involving setting a cost below the average market price to attract customers or gain market share.

Target-Return Pricing

A pricing method whereby the price is based on the amount of investment you have put into your business.

Profit Margin

A financial metric used to assess a firm's financial health by revealing the percentage of money earned as profit.