Parker Division had revenue of $250,000,operating profit of $10,000,and a division investment of $100,000.The investment turnover is
A)0.04
B)2.50
C)4.00
D)0.25

Question

Quizplus · Accepted Answer

Investment Turnover = Revenue / Division Investment 
Investment Turnover = $250,000 / $100,000 = 2.5 
Therefore, the correct choice is (B) 2.5. This means that for every dollar invested in the division, $2.5 of revenue was generated.

Parker Division Had Revenue of $250,000,operating Profit of $10,000,and a Division