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

question 100

Multiple Choice

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

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

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Definitions:

Exact Value

The precise numerical quantity or measurement without approximation.

Estimate

To make an approximate judgment or calculation of the value, number, quantity, or extent of something.

Winner's Curse

A phenomenon that occurs in auctions where the winning bidder pays more than what the item is actually worth, usually because of incomplete information or misjudgment.

Common-value Auction

an auction format where the item for sale is of the same value to all bidders, but the bidders have different information about the item's actual value.