Kaleb’s Karate Supply had a profit margin of 8 percent, sales of $26.6 million,
ID: 2819087 • Letter: K
Question
Kaleb’s Karate Supply had a profit margin of 8 percent, sales of $26.6 million, and total assets of $8.1 million.
What was the total asset turnover? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Total asset turnover times
If management set a goal of increasing total asset turnover to 3.5 times, what would the new sales figure need to be, assuming no increase in total assets? (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Do not round intermediate calculations and round your answer to the nearest whole dollar, e.g., 32.)
Sales $
Explanation / Answer
The total asset turnover = Net Sales / Total Assets
= $ 26. 6 Million / $ 8.1 Million
= 3.283950617 times
Hence the correct answer is 3.28 times
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The total asset turnover = Net Sales / Total Assets
3.5 =Net Sales / 8.1 Million
Net Sales = $ 8. 1 Million * 3.5
= $ 28.35 Million
Hence the correct answer is $28,350,000
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