During 2017, Phelps Corporation Reported Net Sales of $2,500,000, Net

question 59

Multiple Choice

During 2017, Phelps Corporation reported net sales of $2,500,000, net income of $1,320,000, and depreciation expense of $80,000. Phelps also reported beginning total assets of $1,000,000, ending total assets of $1,500,000, plant assets of $800,000, and accumulated depreciation of $500,000. Phelps's asset turnover is

• A)1.3 times.
• B)1.1 times.
• C)1.7 times.
• D)2.0 times.

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Definitions:

Marginal Costs

The price increase resulting from the creation of an additional unit of a product or service.

Marginal Costs

The heightened cost linked to the creation of an extra unit of a product or service.

Inverse Demand Function

A mathematical representation that expresses the price of a good or service as a function of the quantity demanded.

Marginal Cost

The additional expense incurred for producing one more unit of a product or service.