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

Required:
1. Calculate Sub Station's return on assets, profit margin, and asset turnover ratio.
2. Calculate Planet Sub's return on assets, profit margin, and asset turnover ratio.
3. Which company has the higher profit margin and which company has the higher asset turnover? Is this consistent with the primary business strategies of these two companies?

Transcribed Image Text:

Sub StationPlanet Sub $108,249 25,922 Net sales Net income Total assets, beginning Total assets, ending $62,071 3,492 75.183 44,533 38,599 116,371