The information that follows relates to Kravitz Corporation:
Sales margin: 7.5%
Capital turnover: 2
Invested capital: $20,000,000
On the basis of this information, the company's sales revenue is:
A) $1,500,000.
B) $3,000,000.
C) $10,000,000.
D) $40,000,000.
E) None of the other answers are correct.

Question

Quizplus · Accepted Answer

Sales revenue is calculated by multiplying capital turnover by invested capital: 2 * $20,000,000 = $40,000,000.

The Information That Follows Relates to Kravitz Corporation