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Question 24

Multiple Choice

Answer the following questions using the information below:
The top management at Munchie Company,a manufacturer of computer games,is attempting to recover from a flood that destroyed some of their accounting records.The main computer system was also severely damaged.The following information was salvaged:
 Alpha Division  Beta Division  Gamma Division  Sales $2500000(a) $1150000 Net operating profit $1500000$650000$575000 Operating assets (b) (c) $766667 Return on investment 0.250.15 (d)   Return on sales (e) 0.100.5 Investment turnover (f) (g) 1.5\begin{array} { l r r r } & \text { Alpha Division } & \text { Beta Division } & \text { Gamma Division } \\\text { Sales } & \$ 2500000 & ( \mathrm { a } ) & \$ 1150000 \\\text { Net operating profit } & \$ 1500000 & \$ 650000 & \$ 575000 \\\text { Operating assets } & ( \mathrm { b } ) & ( \mathrm { c } ) & \$ 766667 \\\text { Return on investment } & 0.25 & 0.15 & \text { (d) } \\\text { Return on sales } & ( \mathrm { e } ) & 0.10 & 0.5 \\\text { Investment turnover } & ( \mathrm { f } ) & ( \mathrm { g } ) & 1.5\end{array}
-What is Beta Division's investment turnover?


A) 0.15
B) 1.5
C) 2.4
D) 0.67

Correct Answer:

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