Answer:
The investment turnover for Division A is 4.
Explanation:
The computation of the investment turnover ratio for division A is shown below
Operating profit = $40,000
Profit margin percentage = 10%
Profit margin percentage = Operating profit ÷ Net sales
10% = $40,000 ÷Net sales
Net sales = $400,000
Investment = $100,000
Now
Investment turnover = Net sales ÷ Investment
= $400,000 ÷ $100,000
= 4.00
hence, The investment turnover for Division A is 4.