What differences would you expect to find between a convenience store and a car dealership, in...

What differences would you expect to find between a convenience store and a car dealership, in terms of net profit margin and total asset turnover ratios? Why?

Expert Solution

Car dealership would have higher net profit margins compared to convenience store. This is because convenience stores' competitors are largely undifferentiated and competing on price. Also they have high fixed costs.

Convenience store would have higher total asset turnover ratio compared to car dealership. Because sales will be much higher for convenience store and assets required will be less.

jeff jeffy answered 2 years ago

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