The West Division of Cecchetti Corporation had average operating assets of $240,000 and net operating income of $42,200 in August. The minimum required rate of return for performance evaluation purposes is 19%.What was the West Division's minimum required return in August?
A) $45,600
B) $42,200
C) $53,618
D) $8,018

Question

Quizplus · Accepted Answer

The minimum required return is calculated by multiplying the average operating assets by the minimum required rate of return: $240,000 * 19% = $45,600.

The West Division of Cecchetti Corporation Had Average Operating Assets