By How Much Must a Firm Reduce Its Assets in Order

question 33

Multiple Choice

By how much must a firm reduce its assets in order to improve ROA from 10% to 12% if the firm's operating profit margin is 5% on sales of $4 million? (Use the value in dollars)

• A)$240,000
• B)$333,333
• C)$400,000
• D)$516,167

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Definitions:

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The amount of money required to purchase, maintain, or operate something.

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