Metro Services,Inc A) 1120%
B) 7

question 178

Multiple Choice

Metro Services,Inc.reported the following information for the year 2019.Based on the following information,calculate the rate of return on total assets for Metro Services,Inc.(Round the percentage to two decimal places.) $$\begin{array} { | l | l | } \hline \text { Total Assets, December 31,2019 } & \$ 599,000 \\\hline \text { Total Assets, December 31,2018 } & \$ 505,000 \\\hline \text { For Year Ended December 31, 2019: } & \\\hline \text { Interest Expense } & \$ 27,900 \\\hline \text { Net Income } & \$ 67,100 \\\hline\end{array}$$

• A) 11.20%
• B) 7.78%
• C) 17.21%
• D) 7.10%

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Definitions:

Diseconomies of Scale

Diseconomies of scale occur when a firm's costs per unit increase as the scale of its output increases, often due to inefficiencies that arise from managing a larger organization.

Average Fixed Costs

Costs that do not change with the level of output and are spread over the units of output, thus decreasing per unit as production increases.

Output Increases

Output increases refer to a situation where there is a rise in the quantity of goods or services produced by a company or within an economy.

Total Product

The total output or production achieved by a firm from a given amount of inputs.