The West Division of Frede Corporation had average operating assets of $696,000 and net operating income...

Question

Question

The West Division of Frede Corporation had average operating assets of $696,000 and net operating income...

The West Division of Frede Corporation had average operating assets of $696,000 and net operating income of $88,000 in March. The minimum required rate of return for performance evaluation purposes is 15%. What was the West Division's minimum required return in March?

a. $88,000

b. $13,200

c. $104,400

d. $117,600

business accounting

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Minimum required return

= Average operating assets * Required rate of return

= 696,000 * 15%

= 104,400

Option C

Add a comment

Answer 2

Similar Homework Help Questions

The Consumer Products Division of Goich Corporation had average operating assets of $1,750,000 and net operating...

The Consumer Products Division of Goich Corporation had average operating assets of $1,750,000 and net operating income of $160,700 in May. The minimum required rate of return for performance evaluation purposes is 9%. What was the Consumer Products Division's residual income in May?
The Consumer Products Division of Mickolick Corporation had average operating assets of $520,000 and net operating...

The Consumer Products Division of Mickolick Corporation had average operating assets of $520,000 and net operating income of $42,500 in August. The minimum required rate of return for performance evaluation purposes is 996. What was the Consumer Products Division's minimum required return in August? o $3,825 O $42,500 ● $50,625 O $46.800
The Consumer Products Division of Goich Corporation had average operating assets of $1,650,000 and net operating...

The Consumer Products Division of Goich Corporation had average operating assets of $1,650,000 and net operating income of $135,000 in May. The minimum required rate of return for performance evaluation purposes is 8%. What was the Consumer Products Division’s residual income in May? a. $(3,000) b. $10,800 c. $3,000 d. $(10,800)

The Casket Division of Saal Corporation had average operating assets of $1,110,000 and net operating income...

The Casket Division of Saal Corporation had average operating assets of $1,110,000 and net operating income of $295,200 in January. The company uses residual income to evaluate the performance of its divisions, with a minimum required rate of return of 20%. Required: What was the Casket Division's residual income in January?
The Casket Division of Saal Corporation had average operating assets of $1,090,000 and net operating income...

The Casket Division of Saal Corporation had average operating assets of $1,090,000 and net operating income of $275,200 in January. The company uses residual income to evaluate the performance of its divisions, with a minimum required rate of return of 18%. Required: What was the Casket Division's residual income in January?
The Casket Division of Saal Corporation had average operating assets of $1,050,000 and net operating income...

The Casket Division of Saal Corporation had average operating assets of $1,050,000 and net operating income of $235,200 in January. The company uses residual income to evaluate the performance of its divisions, with a minimum required rate of return of 14% Required: What was the Casket Division's residual income in January? Residual income < Prex 2 of 13 Next >

The Casket Division of Saal Corporation had average operating assets of $1,020,000 and net operating income...

The Casket Division of Saal Corporation had average operating assets of $1,020,000 and net operating income of $205,200 in January. The company uses residual income to evaluate the performancee of its divisions, with a minimum required rate of return of 14% Required: What was the Casket Division's residual income in January? Residual income
Help Save & Exit Submit Check my work TB MC Qu. 11-145 The West Division of...

Help Save & Exit Submit Check my work TB MC Qu. 11-145 The West Division of Cecchetti Corporation... The West Division of Cecchetti Corporation had average operating assets of $693,000 and net operating Income of $102,500 in August. The minimum required rate of return for performance evaluation purposes is 16% What was the West Division's minimum required return in August? Multiple Choice O $102,500 O $110.880 o $16,400 O $127.280 < Prex 18 of 20 !! Nex MacBook Air
Cabell Products is a division of a major corporation. Last year the division had total sales of $28,540,000, net operating income of $2,597,140, and average operating assets of $5,708,000. The company...

Cabell Products is a division of a major corporation. Last year the division had total sales of $28,540,000, net operating income of $2,597,140, and average operating assets of $5,708,000. The company's minimum required rate of return is 10%. The division's return on investment (ROI) is closest to: Multiple Choice 9.1% 45.5% 91.0% 20.0%

2. Gabbe Industries is a division of a major corporation. Last year the division had total...

2. Gabbe Industries is a division of a major corporation. Last year the division had total sales of $19,293,750, net operating income of $2,267,016, and average operating assets of $8,575,000. The company's minimum required rate of return is 20% Required: a. What is the division's margin? (Round your percentage answer to 2 decimal places.) b. What is the division's turnover? (Round your answer to 2 decimal places.) c. What is the division's return on investment (ROI)? (Round percentage your answer...

The West Division of Frede Corporation had average operating assets of $696,000 and net operating income...

Homework Answers

Add Answer to:
The West Division of Frede Corporation had average operating assets of $696,000 and net operating income...

Post as a guest

Earn Coins

The Consumer Products Division of Goich Corporation had average operating assets of $1,750,000 and net operating...

The Consumer Products Division of Mickolick Corporation had average operating assets of $520,000 and net operating...

The Consumer Products Division of Goich Corporation had average operating assets of $1,650,000 and net operating...

The Casket Division of Saal Corporation had average operating assets of $1,110,000 and net operating income...

The Casket Division of Saal Corporation had average operating assets of $1,090,000 and net operating income...

The Casket Division of Saal Corporation had average operating assets of $1,050,000 and net operating income...

The Casket Division of Saal Corporation had average operating assets of $1,020,000 and net operating income...

Help Save & Exit Submit Check my work TB MC Qu. 11-145 The West Division of...

Cabell Products is a division of a major corporation. Last year the division had total sales of $28,540,000, net operating income of $2,597,140, and average operating assets of $5,708,000. The company...

2. Gabbe Industries is a division of a major corporation. Last year the division had total...

The West Division of Frede Corporation had average operating assets of $696,000 and net operating income...

Homework Answers

Add Answer to: The West Division of Frede Corporation had average operating assets of $696,000 and net operating income...

Post as a guest

Earn Coins

Add Answer to:
The West Division of Frede Corporation had average operating assets of $696,000 and net operating income...