Problem $7-9$A $($Algo$)$ Calculate and interpret ratios $($LO$7-7)$

Sub Station and Planet Sub reported the following selected financial data. Sub Station's business strategy is to sell the best$-$tasting

sandwich with the highest$-$quality ingredients. Planet Sub's business strategy is to sell the lowest$-$cost sub on the planet.

Required:

Calculate Sub Station's return on assets, profit margin, and asset turnover ratio.

Calculate Planet Sub's return on assets, profit margin, and asset turnover ratio.

$3-$a$.$ Which company has the more favorable profit margin?

$3-$b$.$ Which company has the more favorable asset turnover?

$3-$c$.$ Are the two ratios consistent with the primary business strategies of the two companies?

Complete this question by entering your answers in the tabs below.

Calculate Sub Station's return on assets, profit margin, and asset turnover ratio. Calculate Planet Sub's return on assets, profit margin, and asset turnover ratio. Which company has the more favorable profit margin?

Which company has the more favorable profit margin? Which company has the more favorable asset turnover?

Which company has the more favorable asset turnover?Are the two ratios consistent with the primary business strategies of the two companies?

Are the two ratios consistent with the primary business strategies of the two companies?