Linebarger corporation has net income of $13.69 million and net revenue of $76.24 million in 2017. its assets are $10.16 million at the beginning of the year and $15.17 million at the end of the year. what are linebarger's (a) asset turnover and (b) profit margin? (round answers to 1 decimal place, e. g. 1.6 or 1.6%.)

Given:

net income of $13.69 million

net revenue of $76.24 million

assets are $10.16 million at the beginning of the year

assets are $15.17 million at the end of the year

Formula:

Asset Turnover = Revenue/Net Assets

To get the Net Assets, add the total number of assets at the beginning of the year and at the end of the year, then divide it into 2.

Net Assets = ($10.16 million + $15.17 million)/2

Net Assets = $12.665 million

Then substitute the necessary values

Asset Turnover = $76.24/$12.665

a.)    The asset turnover is equal to 6.019 or 6.0%

Formula:

Profit Margin = Net Income/Net Sales (Revenue)

Profit Margin = $13.69 million/$76.24 million

Profit Margin = 0.179 or 0.2%

b.)    The profit margin is equal to 0.2%

urban company reports the following information regarding its production cost: units produced 37,000 units direct labor $ 30 per unit direct materials $ 35 per unit variable overhead $ 237,000 in total fixed overhead $ 127,000 in total