C. an increase in asset turnover. If the total revenue for a firm increases due to a change in sales price, while all other factors remain constant, the firm will experience an increase in asset turnover. Asset turnover is a financial ratio that measures how efficiently a company uses its assets to generate revenue. It is calculated as total revenue divided by average total assets. Since the total revenue has increased and the assets remain constant, the asset turnover ratio will increase, indicating that the firm has become more efficient in generating revenue from its assets.
According to igrd. Also, option D is incorrect because cash-to-cash cycle time is calculated using days of inventory, payments and receivables outstanding. Nothing to do with selling price.
Asset turnover is a financial metric that measures the efficiency of a company's use of its assets in generating sales revenue. It is calculated by dividing total revenue by average total assets.
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igrd
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