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Return on Investment and Capital Turnover

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Keithley Inc. has two divisions that operate as investment centers. The data for each follows:
Wholesale Retail
Division Division
Sales $ 275,500 $ 283,100
Productive Assets 2,755,000 4,275,000
Net Operating Income 606,100 1,150,000

1) What is the return on investment for the Wholesale Division?
A) 45.90%
B) 34.60%
C) 22.00%
D) 10.00%

2) What is the capital turnover for the Retail Division?
A) 15.10
B) 37.17
C) 26.90
D) 6.60

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The expert calculates the return on investment and capital turnover.

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1) What is the return on investment for the Wholesale Division?
A) 45.90%
B) 34.60%
C) 22.00% ...

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