QUESTION 24 Framing Division The Framing Division had the fo

QUESTION 24 Framing Division The Framing Division had the following data Division Revenue $1,000,000 Profit Margin $100,000 160,000 250,000 Division Investment ear 008 009 010 500,000 1,000,000 2,500,000 Refer to the Framing Division. What is the investment turnover ratio for Year 2010? 0.1 1.5 1.6 2.0

Solution

The answer is given below

1.5

Investment turnover= Revenue/ profit+ investment

Investment turnover= 4,000,000/ 250,000+2,50,000

Investment turnover= 4,000,000/2,750,000

Investment turnover ratio= 1.5