A Company Had Net Income of $45,000,net Sales of $390,000,and

question 52

Essay

A company had net income of $45,000,net sales of $390,000,and average total assets of $250,000 for the current year.Calculate this company's profit margin,total asset turnover,and return on total assets.

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Definitions:

Average Product

The ratio of total product to the amount of input used, determined by dividing the overall output by the input quantity.

Average Product

The average amount of output produced per unit of a specific input, like labor or capital, over a certain period.

Diminishing Returns

The principle stating that if one factor of production is increased while others remain constant, the overall returns will initially increase but will eventually decrease after a certain point.