Hardin Division of WestCo

question 87

Multiple Choice

Hardin Division of WestCo.has sales of $300,000 and NOPAT of $15,000.The company's invested capital is $240,000 and its noninterest-bearing current liabilities are $20,000.What is Hardin Division's investment turnover as it relates to investment center performance evaluation?

• A)5.00
• B)6.25
• C)1.25
• D)0.80

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Definitions:

Deadweight Loss

A loss in economic efficiency that occurs when the optimal quantity of a good or service is not produced or traded.

Labor Markets

Economic marketplaces where labor services are bought and sold, and wages, employment levels, and working conditions are determined.

Inelastic Supply

A situation where the quantity supplied of a good or service is relatively unresponsive to changes in its price.

Labor Supply

The total hours that workers in an economy are willing to work at a given real wage rate.