Mozart, Inc

question 53

Multiple Choice

Mozart, Inc. has net sales of $1,000,000, net income of $68,000, average current assets of $39,000, average fixed assets of $167,000, and average total assets of $207,000. Mozart, Inc.'s return on assets is: (Round your final answer to the nearest percentage.)

• A)41%.
• B)174%.
• C)7%.
• D)33%.

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Definitions:

Raw Material

Basic materials used in the production process, which are transformed into finished goods through the manufacturing process.

Fixed Overhead

Expenses that do not vary with production volume, including rent, salaries, and insurance.

Property, Plant, and Equipment

Long-term assets used in the operations of a business, not intended for sale.

Insurance

A financial product that provides protection against financial losses from specific risks, such as accidents, theft, or natural disasters.