The following footnote appeared in Crabtree Company’ s 20×7 annual report: "On December 31, 20×7, Crabtree recognized a restructuring charge of $ 20 million, of which $ 5 million was for severance pay for employees who will be terminated in 20×8 and $15 million was for land that became permanently impaired in 20×7. " Based only on these changes, Crabtree’ s net profit margin and fixed asset turnover ratio in 20× 8 as compared to 20×7 will beNet profit margin Fixed asset turnover（）①A. Higher Higher ②B. Lower Unchanged ③C. Higher Unchanged
A. ①
B. ②
C. ③
参考答案：C
解析：
The restructuring charge and asset write-down are non-recurring transactions; thus, net income will be higher in 20×8, all else equal. In 20×8, fixed asset turnover will be the same as 20× 7, all else equal. The asset impairment charge is a one-time charge, so fixed assets will not be reduced further in 20×8.