Consider the following data for three divisions of a company, X, Y, and Z: Divisional X Y Z Sales Operating income $1,800,000 $900,000 $4,800,000 252,000 108,000 240,000 Investment in assets 630,000 540,000 3,000,000 The asset turnover (AT) for Division X is: A. 1.43 B. 1.60 C. 1.67 D. 2.86 E. 3.33

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter14: Decentralized Operations
Section: Chapter Questions
Problem 14.3.1P
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Consider the following data for three divisions of a company, X, Y, and Z:
Divisional
X
Y
Z
Sales
Operating income
$1,800,000 $900,000 $4,800,000
252,000
108,000 240,000
Investment in assets 630,000
540,000 3,000,000
The asset turnover (AT) for Division X is:
A. 1.43
B. 1.60
C. 1.67
D. 2.86
E. 3.33
Transcribed Image Text:Consider the following data for three divisions of a company, X, Y, and Z: Divisional X Y Z Sales Operating income $1,800,000 $900,000 $4,800,000 252,000 108,000 240,000 Investment in assets 630,000 540,000 3,000,000 The asset turnover (AT) for Division X is: A. 1.43 B. 1.60 C. 1.67 D. 2.86 E. 3.33
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