Cabell Products is a division of a major corporation. Last year the division had total sales of $25,320,000, net operating income of $1,924,320, and average operating assets of $6,000,000. The company's minimum required rate of return is 10%.The division's turnover is closest to:
A) 13.16
B) 4.22
C) 0.32
D) 3.20

Question

Quizplus · Accepted Answer

Turnover is calculated as Sales divided by Average Operating Assets. Here, $25,320,000 / $6,000,000 = 4.22.

Cabell Products Is a Division of a Major Corporation