Framing Division
The Framing Division had the following data:

Refer to the Framing Division.What is the investment turnover ratio for Year 2010?
A)1.0
B)1.5
C)1.6
D)2.0

Question

Framing Division
The Framing Division had the following data:

Refer to the Framing Division.What is the investment turnover ratio for Year 2010?
A)1.0 
B)1.5 
C)1.6 
D)2.0

Quizplus · Accepted Answer

The investment turnover ratio is calculated by dividing the sales revenue by the total investment. Using the data provided in the question, we can calculate the investment turnover ratio for the year 2010 as follows:

Investment turnover ratio = Sales revenue / Total investment

Sales revenue = $2,500,000
Total investment = $1,562,500

Therefore, Investment turnover ratio for 2010 = $2,500,000 / $1,562,500 = 1.6

Hence, the correct answer is option C.

Framing Division The Framing Division Had the Following Data