Question

Cabell Products is a division of a major corporation. Last year the division had total sales of $25,720,000, net operating income of $2,124,320, and average operating assets of $6,400,000. The company's minimum required rate of return is 12%. The division's turnover is closest to:

Answer 1

Turnover = 4.02

Step-by-step explanation:

Below is the given values:

Total sales = $25720000

Average operating assets = $6400000

Use the below formula to find the turnover.

Turnover = total sales / Average operating assets

Now plug the values in the formula and divide the total sales from average operating assets.

Turnover = 25720000 / 6400000

Turnover = 4.02