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    TATO to the Industry Average

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    Company sales last year $400,000, year end total assets were $300,000. Average firm in the industry has a total assets turnover ratio (TATO) of 2.5. Need to bring the TATO down to industry average without affecting sales, by selling off excess assets. How much must the assets be reduced to bring the TATO to the industry average?

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    https://brainmass.com/math/basic-algebra/tato-industry-average-297915

    Solution Preview

    TATO
    Company sales last year $400,000, year end total assets were $300,000. Average firm in the industry has a total assets ...

    Solution Summary

    TATO is correlated with the industry average.

    $2.49

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