If income from operations for a division is $30,000,sales are $243,750,and invested assets are $187,500,the investment turnover would be 1.3.

Question

Quizplus · Accepted Answer

Investment turnover is calculated by dividing sales by invested assets.

Investment Turnover = Sales / Invested Assets

Plugging in the given values:

Investment Turnover = $243,750 / $187,500 = 1.3

Therefore, the statement is true.

If Income from Operations for a Division Is $30,000,sales Are