QUESTION 25 The West Division of Shekarchi Corporation had average operating ass
ID: 2495175 • Letter: Q
Question
QUESTION 25
The West Division of Shekarchi Corporation had average operating assets of $658,000 and net operating income of $147,000 in March. The minimum required rate of return for performance evaluation purposes is 23%.
What was the West Division's minimum required return in March?
$147,000
$185,150
$151,340
$33,810
The West Division of Shekarchi Corporation had average operating assets of $658,000 and net operating income of $147,000 in March. The minimum required rate of return for performance evaluation purposes is 23%.
Explanation / Answer
Answer: C $151340
Minimum Required Return = Average Operating Assets*Minimum required rate of Return Average Operating Assets $658,000 Minimum required rate of Return 23% Minimum Required Return = $658000*23% $151,340