-What Is the Turnover for Company B?
A) 25

question 31

Multiple Choice

$\begin{array}{l}\text { The following information is available on Company B: }\\\begin{array} { | l | r | } \hline \text { Sales } & \$ 950,000 \\\hline \text { Operating Income } & \$ 56,000 \\\hline \text { Shareholders' Equity } & \$ 100,000 \\\hline \text { Average Operating Assets } & \$ 190,000 \\\hline \text { Minimum Required Rate of Return } & 20 \% \\\hline\end{array}\end{array}$
-What is the turnover for Company B?

• A) 25.
• B) 5.
• C) 9.
• D) 2.

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Definitions:

Variable Conversion Cost

Costs that change with the level of production output, including elements like direct labor and utility expenses related to manufacturing.

Direct Material

Raw materials that are directly traceable to the manufacturing of a specific product and constitute a significant portion of the production costs.

Seasonal Product

A type of product whose demand and availability significantly depend on the season or time of the year.

Total Contribution Margin

The difference between sales revenue and total variable costs, indicating the amount contributing to covering fixed costs and profit.