Florida Inc.has revenues of $1,500,000 resulting in an operating income of $105,000.Average invested assets total $750,000;the cost of capital is 10%.The investment turnover is:

Name: Florida Inc.has revenues of $1,500,000 resulting in an operating income of $105,000.Average invested assets total $750,000;the cost of capital is 10%.The investment turnover is:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Investment turnover is calculated as revenues divided by average invested assets. Therefore, $1,500,000 / $750,000 = 2.00.