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The Fixed Asset Turnover of a Company Is 8

Question 3

Multiple Choice

The fixed asset turnover of a company is 8.3.What do you infer from this?


A) Every dollar spent on the company's fixed assets generates $8.30 of revenue.
B) 8.3% of the company's revenue is invested in fixed assets.
C) The return on fixed assets will break even in 8.3 years.
D) The cost of capital invested on fixed assets is 8.3% of the total profit.

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