A Company Has Computed That Their "Asset Turnover" Is 3

Multiple Choice

A company has computed that their "asset turnover" is 3. Which of the following statements is the best interpretation of these results?

A) For every $3 of sales, $1 of net profit is generated.
B) For every $3 invested in assets, $1 in net profit is generated.
C) For every $1 invested in assets, $3 in sales are generated.
D) For every $3 invested in assets, $1 in sales are generated.