Question

Chace products is a division of a major corp Last year the division had total sales of 21,300,000, NOI of575,100, and avg operating assets of _______. The divisions turnover is closest to:

1) 3.82
2) 4.26
3) 0.12
4) 37.04

Answer 1

To calculate the turnover, divide the total sales by the average operating assets. The missing average operating assets value is necessary to determine the exact turnover and compare it to the provided options.

Step-by-step explanation:

The student's question pertains to the calculation of turnover, which is a measure of how effectively a division uses its assets to generate sales. To find the division's turnover, one would divide the total sales by the average operating assets. The formula for turnover is given by Turnover = Total Sales / Average Operating Assets. However, the average operating assets value is missing in the information provided.

Once that information is known, the given options can be evaluated to identify which one is closest to the calculated turnover.The turnover ratio is calculated by dividing the total sales by the average operating assets.In this case, the total sales of the Chace products division is $21,300,000 and the average operating assets are unknown.

To calculate the turnover ratio, we divide the total sales by the average operating assets: Turnover ratio = Total Sales / Average Operating AssetsTherefore, without the value of the average operating assets, we cannot determine the turnover ratio or identify which of the given options (1) 3.82, (2) 4.26, (3) 0.12, or (4) 37.04 is closest to the actual turnover ratio.