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

Minimum required return = Average operating assets × Minimum required rate of return
= $800,000 × 10% = $80,000

The Consumer Products Division of Goich Corporation Had Average Operating