Compute the Asset Turnover (Rounded to Two Decimal Places)for the Tim

question 74

Multiple Choice

Compute the asset turnover (rounded to two decimal places) for the Tim Tom investment center as shown below. $\begin{array}{lr} & \text { Tim Tom Subsidiary } \\\text { Total sales } & \$ 1,600 \\\text { Operating income } & \$ 100 \\\text { Average assets invested } & \$ 900 \\\text { Profit margin } & ? \\\text { Asset turnover } & ? \\\text { ROI } & ?\end{array}$

• A) 1.78
• B) 0.56
• C) 0.11
• D) 9.00

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Definitions:

Economic Growth

An increase in the production of goods and services in an economy over a period, indicating improving national prosperity.

Production Possibilities Frontier

A curve depicting all maximum output possibilities for two goods, given a set of inputs resources and technology.

Economic Decline

A period where an economy experiences reduced economic activity, often marked by decreases in GDP, employment, and consumer spending.

Production Possibilities Frontier

A curve depicting all maximum output possibilities for two or more goods given a set of inputs (resources), assuming all inputs are used efficiently.