Calculate Company Y's Return on Assets Based on the Following

question 59

Multiple Choice

Calculate Company Y's return on assets based on the following information for the current year: (Round your final answer to two decimal places.)

$\begin{array} { | l | r | } \hline \text { Net income } & \$ 800,000 \\\hline \text { Assets at the beginning of the year } & \$ 100,000 \\\hline \text { Assets at the end of the year } & \$ 120,000 \\\hline \text { Net sales } & \$ 900,000 \\\hline\end{array}$

• A) 8.18
• B) 7.27
• C) 7.50
• D) 9.00

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Definitions:

Economic Profit

The separation between overall turnover and cumulative costs, incorporating both direct and indirect expenditures.

Profit-Maximizing Monopolist

A monopoly firm that aims to achieve the highest possible profit by adjusting the price and output of its product or service.

Total Cost Schedules

A detailed list showing the total cost associated with various levels of output production.

Entry Barriers

Obstacles that prevent new competitors from easily entering an industry or area of business.