The following information is available for our company for the current year:

• operating income, $75,000;
• average total assets, $500,000;
• net sales, $750,000; and
• required rate of return, 12%.

Calculate the profit margin to two decimal places.

A) 6.67%

B) 10.00%

C) 15.00%

D) 16.67%

The following information is available for our company for the current year:

• operating income, $75,000;
• average total assets, $500,000;
• net sales, $750,000; and
• required rate of return, 12%.

Calculate the asset turnover to two decimal places.

A) 1.25 times

B) 1.50 times

C) 6.67 times

D) 8.75 times

The following information is available for our company for the current year:

• operating income, $45,000;
• average total assets, $400,000;
• net sales, $900,000; and
• required rate of return, 12%.

Calculate the minimum acceptable operating income.

A) ($3000)

B) $3000

C) $45,000

D) $48,000