Agustin Industries is a division of a major corporation. Data concerning the most recent year appears below: The division's turnover is closest to:
A) 23.81
B) 3.62
C) 0.15
D) 6.58

Question

Agustin Industries is a division of a major corporation. Data concerning the most recent year appears below:  The division's turnover is closest to:
A) 23.81 
B) 3.62 
C) 0.15 
D) 6.58

Quizplus · Accepted Answer

Turnover is calculated by dividing the total cost of goods sold by the average inventory. Using the data provided in the table, the cost of goods sold is $362,000 and the average inventory is $99,800. Therefore, the turnover is 362,000/99,800 = 3.62.

Agustin Industries Is a Division of a Major Corporation