Brew-Me-A-Cup is a new and growing chain of coffee shops. The company operates its business using segments

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Brew-Me-A-Cup is a new and growing chain of coffee shops. The company operates its business using segments to control and manage operations. The most profitable division is the specialty drinks division. In the Hillsborough Avenue location, the division has sales of $600,000, net operating income of $15,000, and average operating assets of $1,200,000.

Required
What is the asset turnover for the specialty drinks division?

Asset Turnover
Asset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio.
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Managerial Accounting A Focus on Ethical Decision Making

ISBN: 978-0324663853

5th edition

Authors: Steve Jackson, Roby Sawyers, Greg Jenkins

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