Exhibit 11-4
the Following Information Is for Two Divisions at Wiley

question 43

Multiple Choice

Exhibit 11-4
The following information is for two divisions at Wiley Company.
$\begin{array}{lcc}&\text { Couch Division }&\text { Chair Division }\\\hline\text { Sales } & ? & \$ 6,000,000 \\\text { Operating income } & ? & \$ 560,000 \\\text { Operating profit margin } & 11.0 \% & ? \\\text { Average operating assets } & \$ 1,250,000 & \$ 4,000,000 \\\text { Asset turnover } & 2.0 & ? \\\text { ROI } & ? & ?\end{array}$
-Refer to Exhibit 11-4.What is the asset turnover for the Chair Division (rounded to the nearest tenth) ?

• A)0.7
• B)7.1
• C)1.5
• D)0.1
• E)None of the answer choices is correct.

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Definitions:

Office Equipment

Tangible property like desks, computers, and machinery used in an office for operations.

Fair Market Value

The price at which an asset would change hands between a willing buyer and seller, both having reasonable knowledge of the relevant facts and neither being under any compulsion to buy or sell.

Ownership Transfer

The act of transferring the title or rights of property from one party to another.

Journalize

The process of recording financial transactions in a company's accounting records or journals.