Sub Station and Planet Sub reported the following selected financial data ($ in thousands). Sub Station's...

 

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Sub Station and Planet Sub reported the following selected financial data ($ in thousands). 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. Net sales Net income Total assets, beginning Total assets, ending Required: 1. Calculate Sub Station's return on assets, profit margin, and asset turnover ratio. 2. Calculate Planet Sub's return on assets, profit margin, and asset turnover ratio. Sub Station Planet Sub $ 108,249 $ 62,071 25,922 3.492 75,183 38.599 116,371 44,533 3. Which company has the more favorable profit margin, and which company has the more favorable asset turnover? Is this consistent with the primary business strategies of these two companies? Compute return on assets, profit margin, and asset turnover Sub Station and Planet Sub reported the following selected financial data ($ in thousands). 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. Net sales Net income Total assets, beginning Total assets, ending Required: 1. Calculate Sub Station's return on assets, profit margin, and asset turnover ratio. 2. Calculate Planet Sub's return on assets, profit margin, and asset turnover ratio. Sub Station Planet Sub $ 108,249 $ 62,071 25,922 3.492 75,183 38.599 116,371 44,533 3. Which company has the more favorable profit margin, and which company has the more favorable asset turnover? Is this consistent with the primary business strategies of these two companies? Compute return on assets, profit margin, and asset turnover