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Total asset turnover and new sales figure

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Kaleb's Karate Supply had a profit margin of 7 percent, sales of $10 million, and total assests of $6 million. What was total asset turnover? If management set a goal of increasing total asset turnover to 2.25 times, what would the new sales figure need to be, assuming no increase in total assets?

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Solution Summary

The solution explains how to calculate the total asset turnover and the new sales figure given a change in total asset turnover

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Total Asset Turnover = Sales/Total Assets = 10/6 =1.67

In the second part, ...

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