The Electronics Division of Anton Company reports the following results for the current year: $\begin{array}{lrl}
\text { Revenues } &\$ 800,000 \
\text { Operating expenses } & \$ 656,000 \
\text { Operating income } & \$ 144,000 \
\text { Operating assets } & \$ 1,200,000
\end{array}$

Anton Company has set a target return on investment (ROI) of 11% for the Electronics Division. The Electronic Division's turnover (asset utilization) is:
A) 0.1125.
B) 0.12.
C) 0.667.
D) 0.18.

Question

The Electronics Division of Anton Company reports the following results for the current year: $\begin{array}{lrl}
\text { Revenues } &\$  800,000 \
\text { Operating expenses } & \$  656,000 \
\text { Operating income } & \$ 144,000 \
\text { Operating assets } & \$ 1,200,000
\end{array}$

Anton Company has set a target return on investment (ROI) of 11% for the Electronics Division. The Electronic Division's turnover (asset utilization) is:
A) 0.1125.
B) 0.12.
C) 0.667.
D) 0.18.

Quizplus · Accepted Answer

Turnover (asset utilization) is calculated as Revenues divided by Operating Assets. Here, it is $800,000 / $1,200,000 = 0.667.

The Electronics Division of Anton Company Reports the Following Results