Mason Corporation had in invested assets, sales of , operating income amounting to , and a desired minimum return on investrment of .
The investment turnover (rounded to two decimal places) for Mason Corporation is
a. 1.08
b. 6.57
c. 0.93
d. 7.07

To calculate the investment turnover, we use the formula:

Plugging in the numbers:

Therefore, the investment turnover for Mason Corporation is , which corresponds to option (a).

Now that we’ve done the calculations, think of this as finding out how efficiently Mason Corporation is utilizing its invested assets to generate sales. A higher ratio indicates that the business is using its resources effectively, much like a chef who can whip up an amazing meal with just a few ingredients!

For practical application, businesses will often track investment turnover to assess their operational efficiency. If this number is low, it might signal that they need to make adjustments—like optimizing inventory management or marketing strategies—to get more bang for their buck. After all, it’s not just about how much you sell, but how well you’re using what you have!