Asked by
Annalisa De Tello
on Nov 17, 2024
Verified
If operating income for a division is $30,000, sales are $263,750, and invested assets are $187,500, the investment turnover is 1.3.
Investment Turnover
A ratio that measures the efficiency of a company in using its investments to generate sales or revenue.
Operating Income
The income generated from the primary activities of a company, before subtracting any interest and tax expenses.
- Assess the computation and importance of investment turnover in performance evaluation.
Verified Answer
BT
Learning Objectives
- Assess the computation and importance of investment turnover in performance evaluation.
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