Braymiller Inc. has a $1,600,000 investment opportunity with the following characteristics: $\begin{array}{lc}
\text { Sales } & \$ 4,000,000 \
\text { Contribution margin ratio } & 30 \% \text { of sales } \
\text { Fixed expenses } & \$ 1,040,000
\end{array}$ The turnover for this investment opportunity is closest to:

Question

Quizplus · Accepted Answer

The turnover is calculated as sales divided by the investment. Here, sales are $4,000,000 and the investment is $1,600,000. Thus, turnover = $4,000,000 / $1,600,000 = 2.5.

Braymiller Inc The Turnover for This Investment Opportunity Is Closest To: A)

Braymiller Inc The Turnover for This Investment Opportunity Is Closest To:
A)