Answer: D. $3,000,000
Explanation:
Asset turnover is the ratio of total sales or revenue to average assets
Debt to asset ratio is total liabilities divided by total assets.
Total liability is $500,000
Debt to asset ratio is total liability/total asset= 500,000/total asset = 0.5
Total asset = 500,000 x 10/5
Total asset = 1,000,000
Asset turn over = total sales/average asset
Assets turnover = 3.0
3.0= total sales/1,000,000
3.0= total sales/1,000,000
Total sales = 3.0 x 1,000,000
Total sales = 3,000,000
