Sub Station and Planet Sub reported the following selected financial data ($ in thousands). Sub Stations business strategy is to sell the best tasting sandwich with the highest quality ingredients. Planet Subs business strategy is to sell the lowest cost sub on the planet.

Sub Station

Planet Sub

Net sales

$ 110,249

$ 64,071

Net income

27,922

5,492

Total assets, beginning

77,183

42,399

Total assets, ending

120,371

48,533

1. Calculate Sub Stations return on assets, profit margin, and asset turnover ratio. (Enter your answers in thousands of dollars. (i.e. 123,000 should be entered as 123).)

2. Calculate Planet Sub's return on assets, profit margin, and asset turnover ratio. (Enter your answers in thousands of dollars. (i.e. 123,000 should be entered as 123).)

3-a. Which company has the higher profit margin?

	Sub Stations
	Planet Sub

3-b. Which company has the higher asset turnover?

	Sub Stations
	Planet Sub

3-c. Are the two ratios consistent with the primary business strategies of the two companies?

	Yes
	No