The Consumer Products Division of Goich Corporation had average operating assets of $500.000 and net operating income of $41,500 in May. The minimum required rate of return for performance evaluation purposes is 12%. What was the Consumer Products Division's minimum required return in May?

The Consumer Products Division of Goich Corporation had average operating assets of $500.000 and net operating income of $41,500 in May. The minimum required rate of return for performance evaluation purposes is 12%. What was the Consumer Products Division's minimum required return in May?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter10: Decentralization: Responsibility Accounting, Performance Evaluation, And Transfer Pricing

Section: Chapter Questions

Problem 1CE: Forchen, Inc., provided the following information for two of its divisions for last year: Required:...

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Question

The Consumer Products Division of Goich Corporation had average operating assets of $500,000 and net operating income of $41,500 in May. The minimum required rate of return for performance
evaluation purposes is 12%.
What was the Consumer Products Division's minimum required return in May?
Multiple Cholce
$4,980
$41,500
$64,980
$60.000
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