Bonilla Inc. has a $700,000 investment opportunity with the following characteristics: $\begin{array}{lc}
\text { Sales } & \$ 2,240,000 \
\text { Contribution margin ratio } & 40 \% \text { of sales } \
\text { Fixed expenses } & \$ 739,200
\end{array}$ The turnover for the investment opportunity is closest to:

Question

Quizplus · Accepted Answer

The turnover for the investment opportunity is calculated as sales divided by the investment. Given sales of $2,240,000 and an investment of $700,000, the turnover is $2,240,000 / $700,000 = 3.20.

Bonilla Inc The Turnover for the Investment Opportunity Is Closest To: A)

Bonilla Inc The Turnover for the Investment Opportunity Is Closest To:
A)