The West Division of Shekarchi Corporation had average operating assets of $620,000 and net operating income of $80,100 in March. The minimum required rate of return for performance evaluation purposes is 14%.
-What was the West Division's minimum required return in March?
A)$80,100
B)$86,800
C)$11,214
D)$98,014

Question

Quizplus · Accepted Answer

Minimum required return = Average operating assets F1F1F1S1F1F1F10 Minimum required rate of return
= $620,000 F1F1F1S1F1F1F10 14% = $86,800

The West Division of Shekarchi Corporation Had Average Operating Assets