Asked by kevin Sullivan on Jun 07, 2024

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If the company pursues the investment opportunity and otherwise performs the same as last year, the combined turnover for the entire company will be closest to:

A) 8.03
B) 1.85
C) 2.41
D) 1.46

Combined Turnover

Generally refers to the total amount of assets or inventory turned over in a specific period by combining different business segments or product lines.

Investment Opportunity

A financial venture or asset that offers the potential for profitable returns, through interests, dividends, or capital appreciation.

Company

An organization engaged in commercial, industrial, or professional activities, either as a for-profit or non-profit entity.

  • Acquire an understanding of the effect new investment opportunities have on prevailing financial metrics.
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Calliesta Pariseau

Jun 13, 2024

Final Answer :
B
Explanation :
Sales = $5,700,000 + $1,530,000 = $7,230,000
Average operating assets = $3,000,000 + $900,000 = $3,900,000
Turnover = Sales ÷ Average operating assets = $7,230,000 ÷ $3,900,000 = 1.85