单选题 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 be?
Net profit margin Fixed asset turnover
①A. Higher Higher
②B. Lower Unchanged
③C. Higher Unchanged

A、 ①
B、 ②
C、 ③

【正确答案】 C

【答案解析】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.