Question

The following information pertains to the three divisions of Yang Company: Division A Division B Division...

The following information pertains to the three divisions of Yang Company:

Division A Division B Division C
Sales ? ? $1,345,000
Net operating income $48,000 $18,000 $82,000
Average operating assets $420,000 ? ?
Return on investment ? 15% 20%
Margin 0.2 0.015 ?
Turnover 2.1 ? ?
Target ROI 17% 14% 8%


What is the turnover for Division C?

a.6.670

b.3.28

c.1.500

d.0.20

0 0
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Answer #1
Net operating income 82000
Divide by Return on investment 20%
Average operating assets 410000
Sales 1345000
Divide by Average operating assets 410000
Turnover for Division C 3.28
Option B 3.28 is correct
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