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Division A of Chacha Company has sales of $140,000, cost of goods sold of $83,000, operating expenses of $43,000, and invested assets of $150,000. The investment turnover for Division A is:______

a. 10.7
b. 9.3
c. 1.07
d. 0.93

Respuesta :

ayokenny2001

Answer:

d. 0.93

Explanation:

Investment turnover is a measurement of how a company is able to generate revenue as a result of using the money invested in the company.

Investment turnover is computed by

= Net sales ÷ Invested assets

Given that;

Sales = $140,000

Invested assets = $150,000

Investment turnover = $140,000 ÷ $150,000

Investment turnover = 0.93

Therefore, investment turnover for Division A is 0.93

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