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 $2,124320, 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: Multiple Choice 12.11
4.02
0.33
2.77

Answer 1

The minimum rate of return demanded by the firm is 12%. The closest turnover in the division is 4.02. Here option B is the correct answer.

A company's turnover is the total of its sales during a specific time period. It is sometimes referred to as "income" or "gross revenue."

The typical quantity of assets required to carry out continuing business activities is referred to as average operational assets. This number may be incorporated into the operational assets ratio, which evaluates how much of these assets make up overall assets owned by a company.

Divide the total number of separations that took place within the specified time period by the average number of employees to get your turnover rate. To express that amount as a percentage, multiply it by 100.

Turnover = Sales/Average operating assets

= 25720000/6400000

Turnover = 4.02

To learn more about turnover

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