Cabell Products is a division of a major corporation. Last year the division had total sales of $26,320,000, net operating income of $2,424,320, and average operating assets of $7,000,000. The company's minimum required rate of return is 12%.The division's turnover is closest to:
A) 10.86
B) 3.76
C) 0.35
D) 2.89

Question

Quizplus · Accepted Answer

The division's turnover is calculated as total sales divided by average operating assets. Therefore, turnover = $26,320,000 / $7,000,000 = 3.76.

Cabell Products Is a Division of a Major Corporation