What is the investment turnover of Altira

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Q1. Altira Inc. has sales revenue of $1,875,000 resulting in an operating income of $187,500. Average investment in assets total $375,000and the cost of capital (hurdle rate) is 19%. What is the investment turnover of Altira?

Q2. Leo Corp. has sales revenue of $509,000 resulting in operating income of $57,000. Average invested assets total $603,000, and the cost of capital is 6%. Calculate the return on investment if sales increase by 10% and the profit margin and invested assets remain the same.

Reference no: EM132613318

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