If Sharpe Products Ltd Has a Asset Turnover Ratio of 2

question 50

Multiple Choice

If Sharpe Products Ltd has a asset turnover ratio of 2 times and a net profit margin of 6.5%, the return on total assets is:

• A) 8.5%.
• B) 13.0%.
• C) 6.5%.
• D) 30.0%.

Analyze the relationship between price change percentages and required sales volume changes to maintain net operating income.

Understand the relevance of a product’s useful life and operating costs in pricing decisions.

Evaluate the differentiation value offered by a product relative to its competitors.

Apply rounding conventions appropriately in financial calculations related to pricing and costing.

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Definitions:

Median

A statistical measure representing the middle value in a set of numbers, which divides the data into two equal halves.

Mean

An average of a group of values, computed by dividing the sum of the group of values by the number of values in the group.

Frequency Distribution

A mathematical function showing the number of instances in which a variable attains each of its possible values.

Histogram

A diagram that presents the grouped data from a frequency table.