By How Much Must a Firm Reduce Its Assets in Order

question 12

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?

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

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Definitions:

Facial

Pertaining to the face, including structures, muscles, or expressions associated with the human face.

Umami

Umami, one of the five basic tastes, is the savory taste attributed to amino acids such as glutamate, and nucleotides.

Tastant

Substances that can be tasted or detected by the taste receptors, contributing to the sense of taste.

Depolarization

The reduction in membrane potential that makes a neuron more likely to produce an action potential.