A Company Had Net Income of $82,000,net Sales of $781,000,and

question 130

Multiple Choice

A company had net income of $82,000,net sales of $781,000,and average total assets of $300,000.Its profit margin and total asset turnover were respectively:

• A)10.5%; 0.38
• B)10.5%; 2.6
• C)9.52%; 2.6
• D)27.3%; 1
• E)27.3%; 9.52

---

Definitions:

Cosmetic Flaws

Minor imperfections in the appearance of a product that do not affect its functionality.

Control Chart Limits

Thresholds defined in control charts that represent acceptable variations in a process, used to detect if a process is out of control.

Sigma Control Limits

Statistical boundaries set within a control chart to identify the acceptable range of process variations in Six Sigma methodologies.

Standard Deviation

A measure of the dispersion or variation in a set of values, indicating how spread out the values are from the average.