A company has an asset turnover ratio of 1.8, inventory of $3,000, a 20% profit margin, and $5,000 in total assets. What is the total sales volume for the company?
A company has an asset turnover ratio of 1.8, inventory of $3,000, a 20% profit margin, and $5,000 in total assets. What is the total sales volume for the company?
The asset turnover ratio is calculated by dividing the total sales by the total assets. Given the asset turnover ratio of 1.8 and total assets of $5,000, the total sales can be found by multiplying these two values: 1.8 * $5,000 = $9,000. Therefore, the total sales volume for the company is $9,000.
Asset Turnover ratio = Sales / Total Assets ie. Sales = 1.8 * 5000 = 9000
3000*1,8 = 5400 3000*1,2= 3600 5400+3600 = 9000