Question

stion 5 (0f 9 Save & Exit Submit 5 value 2.77 points Baker Oats had an asset turnover of 2 times per year. a. If the return on total assets (investment) was 13.5 percent, what was Baker's profit margin? (Input your answer as a percent rounded to 1 decimal place.) % Profit margin b. The following year, on the same level of assets, Baker's assets turnover declined to 1.8 times and its profit margin was 7.5 percent. How did the return on total assets change from that of the previous year? Increased Decreased No change Hints References eBook & Resources Hint #1 Check my work 2019 McGraw-Hill Education. All rights reserved O0O

Answer 1

rate positively ..

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	Given that-
ans a)	Asset turnover =	2	time
	or Sales/Total asset =	2	time
	Return on asset =	13.50%
	Net income/Total asset=	13.50%
	therefore profit margin =	27.00%
	13.5%*2
ans b)	Return on total asset =	13.50%
	1.8*7.5%
	Therefore answer =	No Change

Answer 2

THE PROFIT MARGIN ITS 13.5/2 = 6.75