Spears Co Had Net Sales of $35,400 Million

question 213

Multiple Choice

Spears Co. had net sales of $35,400 million. Its average total assets for the period were $14,700 million. Spears' total asset turnover equals:

• A) 3.54.
• B) 0.42.
• C) 1.48.
• D) 2.41.
• E) 0.35.

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Definitions:

Per Unit Profit

The profit earned from selling one unit of a product, calculated by subtracting the cost per unit from the selling price per unit.

MR = MC Rule

A principle in economics where the optimal level of output is reached when marginal revenue equals marginal cost.

Price Taker

An individual or company that must accept prevailing prices in the market of its products or services, lacking the market power to influence prices on its own.

Break Even

The point at which total cost and total revenue are equal, resulting in no net loss or gain.