The Central Division of Nebraska Company has a return on investment of 28% and a profit margin of 14%. The investment turnover is
A)0.2
B)2.0
C)5.0
D)0.5

Question

Quizplus · Accepted Answer

The investment turnover is calculated by dividing the return on investment (ROI) by the profit margin. Here, ROI is 28% and the profit margin is 14%, so the investment turnover is 28% / 14% = 2.0.

The Central Division of Nebraska Company Has a Return on Investment