The Fixed Asset Turnover of a Company Is 8

question 5

Multiple Choice

The fixed asset turnover of a company is 8.3.What do you infer from this?

• A) Every dollar spent on the company's fixed assets generates $8.30 of revenue.
• B) 8.3% of the company's revenue is invested in fixed assets.
• C) The return on fixed assets will break even in 8.3 years.
• D) The cost of capital invested on fixed assets is 8.3% of the total profit.

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