Selected data from Chering Division's accounting records revealed the following:
$\begin{array}{lcc}
\text { Sales } & \$ 825,000 \
\text { Average investment } & \$ 440,000 \
\text { Net operating income } & \$ 66,000 \
\text { Minimum rate of return (divisional cost of capital) } & 14 \%
\end{array}$Chering Division's asset turnover (AT) is calculated to be:
A)1.070.
B)1.625.
C)1.875.
D)4.270.
E)12.500.

Question

Selected data from Chering Division's accounting records revealed the following:
$\begin{array}{lcc}
\text { Sales } & \$ 825,000 \
\text { Average investment } & \$ 440,000 \
\text { Net operating income } & \$  66,000 \
\text { Minimum rate of return (divisional cost of capital) } & 14 \%
\end{array}$Chering Division's asset turnover (AT) is calculated to be:
A)1.070.
B)1.625.
C)1.875.
D)4.270.
E)12.500.

Quizplus · Accepted Answer

The Answer of Selected data from Chering Division's accounting records revealed the following:
$\begin{array}{lcc}
\text { Sales } & \$ 825,000 \
\text { Average investment } & \$ 440,000 \
\text { Net operating income } & \$  66,000 \
\text { Minimum rate of return (divisional cost of capital) } & 14 \%
\end{array}$Chering Division's asset turnover (AT) is calculated to be:
A)1.070.
B)1.625.
C)1.875.
D)4.270.
E)12.500.

Selected Data from Chering Division's Accounting Records Revealed the Following