The Electronics Division of Anton Company reports the following results for the current year: 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:  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 = Sales ÷ Operating assets
Turnover = $800,000 ÷ $1,200,000 = 0.667

The Electronics Division of Anton Company Reports the Following Results