TravelLite and FareLine complete as online travel agencies. Historically, Travel

Question

TravelLite and FareLine complete as online travel agencies. Historically, TravelLite has focused more on flights whereas FareLine has focused on hotel bookings. The following amounts were reported by the two companies in 2012. (in million) TravelLite Net Income $630 Total Assets $7,930 Total Liabilities $5,500 Total Revenues $5,080 (in million) FareLine Net Income 2,120 Total Assets 7,410 Total Liabilities 3,370 Total Revenues 6,310 1. Calculate each company's net profit margin expressed as a percent. (Round your answers to the nearest whole percent.) Net Profit Margin TravelLite FareLine % % 2. Which company has generated a greater return of profit from each revenue dollar? TravelLite FareLine

Explanation / Answer

Net Profit Margin: TravelLite 12% FareLine 34% FareLine has generated a greater return of profit from each revenue dollar

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