Asked by Michael Kumlien on Jul 27, 2024
Verified
Verbeke Incorporated reported the following results from last year's operations: 
Last year's turnover was closest to:
A) 16.67
B) 0.06
C) 2.10
D) 0.48
Turnover
In business, the total volume of sales or revenue made within a specified period. It can also refer to the rate at which employees leave a workforce and are replaced.
Operating Assets
Resources owned by a business that are used in its day-to-day operations to generate revenues, including both physical and intangible assets.
- Achieve an understanding of operational performance metrics such as net operating income, margin, turnover, and return on investment calculation strategies.
Verified Answer
Turnover = Cost of Goods Sold / Average Inventory
Turnover = (407,500 + 387,500) / [(70,000 + 60,000) / 2]
Turnover = 795,000 / 65,000
Turnover = 12.23
The closest answer choice to 12.23 is C) 2.10.
Learning Objectives
- Achieve an understanding of operational performance metrics such as net operating income, margin, turnover, and return on investment calculation strategies.
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