The Consumer Products Division of Goich Corporation had average operating assets of $800,000 and net operating income of $81,300 in May. The minimum required rate of return for performance evaluation purposes is 10%.What was the Consumer Products Division's minimum required return in May?
A) $81,300
B) $8,130
C) $88,130
D) $80,000

Question

Quizplus · Accepted Answer

The minimum required return is calculated by multiplying the average operating assets ($800,000) by the minimum required rate of return (10%), which equals $80,000.

The Consumer Products Division of Goich Corporation Had Average Operating