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Correll Company has two divisions, A and B. Information for each division is as follows: Division A B Operating Profit A $40,000 B $260,000 Investment

Correll Company has two divisions, A and B. Information for each division is as follows:

Division

A

B

Operating Profit

A $40,000

B $260,000

Investment in Division

A $100,000

B $1,200,000

Weighted Average Cost of Capital

A 12%

B 12%

Profit Margin Percentage

A 10%

B 20%

What is the investment turnover for Division A?

A.

2.5

B.

.10

C.

.15

D.

4.00

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