Dimeback co. has total assets of $8,500,000 and a total asset turnover of 1.8 times. if the return on assets is 8.5 percent. required: what is its profit margin?

Total asset turnover ratio = Net Sales/ Total assets

Total asset turnover ratio = 1.8

Total assets = 8,500,000

1.8 =  Net Sales/ 8,500,000

Net Sales = 8,500,000*1.8 = 15,300,000

Return on Assets = Net Income/ Total assets

Return on assets = 8.5% = 0.085

Total assets = 8,500,000

0.085 = Net Income/8,500,000

Net Income = 8,500,000*0.085 = 722,500

Profit margin = Net income/Net sales

Profit margin = 722,500/15,300,000 = 0.0472

Profit margin = 4.72%

explanation: doctrine of respondeat superior is a legal doctrine that is commonly used in tort. this principle makes an employer or principal legally responsible for the wrongful acts done by an employee or agent, if such acts occur within the scope of the employment or agency.

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