Question
Asked Sep 18, 2019
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Dimeback Co. has total assets of $8,500,000 and a total asset turnover of 1.8 times. If
the return on assets is 8.5 percent.
Required:
What is its profit margin? (Do not round intermediate calculations. Round your answer
to 2 decimal places (e.g., 32.16).)
Profit margin
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Dimeback Co. has total assets of $8,500,000 and a total asset turnover of 1.8 times. If the return on assets is 8.5 percent. Required: What is its profit margin? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Profit margin

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Expert Answer

Step 1

Calculation of Profit Margin:

The profit margin is 4.72%.

Excel Spreadsheet:

...
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В6 fiB5/B4 A В S8,500,000 1 Total Assets Total Asset Turnover 1.80 2 Return on Assets 8.50% 3 4 Sales $15,300,000 $722.500 4.72% 5 Net Income Profit Margin

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