Sub Station and Planet Sub reported the following selected financial data. Sub Station's business strategy is to sell the best$-$

tasting sandwich with the highest$-$quality ingredients. Planet Sub's business strategy is to sell the lowest$-$cost sub on the

planet.

Required:

Calculate Sub Station's return on assets, profit margin, and asset turnover ratio.

Calculate Planet Sub's return on assets, profit margin, and asset turnover ratio.

$3-$a$.$ Which company has the more favorable profit margin?

$3-$b$.$ Which company has the more favorable asset turnover?

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

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