Two divisions of Oregano Company Divisions TX and OY have the same profit margins Division TXs investment turnover is larger than that of Division OY 12 to 10 Income from operations for Division TX is

a. using its assets more efficiently in generating sales.

The investment turnover ratio measures how efficiently a company uses its assets to generate sales. Since Division TX has a higher investment turnover ratio than Division OY, it means that Division TX is using its assets more efficiently in generating sales. Therefore, it has a higher return on investment compared to Division OY. The other options (using income from operations as a performance measure, comparing profit margins, and applying a negotiated price measure) do not directly explain why Division TX has a higher return on investment