If a company's operating profit margin is 4% and its total asset turnover is 1.5 times, its operating return on assets is: A. 2.7%. B. 6.0%. C. 7.3%.

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 26MCQ
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Please need answer the accounting question

If a company's operating profit margin
is 4% and its total asset turnover is 1.5
times, its operating return on assets is:
A. 2.7%.
B. 6.0%.
C. 7.3%.
Transcribed Image Text:If a company's operating profit margin is 4% and its total asset turnover is 1.5 times, its operating return on assets is: A. 2.7%. B. 6.0%. C. 7.3%.
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