APICS Certified Supply Chain Professional (CSCP) — Question 46

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?

Answer options

• A. $5,400
• B. $9,000
• C. $15,000
• D. $25,000

Correct answer: B

Explanation

The asset turnover ratio is calculated by dividing total sales by total assets. Given the ratio of 1.8 and total assets of $5,000, the total sales volume can be determined as 1.8 * $5,000, which equals $9,000. The other options are incorrect as they do not align with this calculation.