A Firm Has an Asset Turnover of 3 Times and a Net

Multiple Choice

A firm has an asset turnover of 3 times and a net profit margin of 4%.In the next year its margin decreases to 2%.This is not necessarily bad if

A) asset turnover increases to at least 6 times
B) asset turnover decreases to 1.5 times
C) asset turnover doesn't change
D) gross margin increases enough to offset the decrease in net profit margin