The Consumer Products Division of Goich Corporation had average operating assets of $540,000 and net operating income of $43,500 in May. The minimum required rate of return for performance evaluation purposes is 11%.What was the Consumer Products Division's minimum required return in May?
A) $4,785
B) $43,500
C) $64,185
D) $59,400

Question

Quizplus · Accepted Answer

The minimum required return is calculated by multiplying the average operating assets by the minimum required rate of return: $540,000 * 11% = $59,400.

The Consumer Products Division of Goich Corporation Had Average Operating