The west division of cecchetti corporation had average operating assets of $638,000 and net operating income of $78,000 in august. the minimum required rate of return for performance evaluation purposes is 14%. what was the west division's minimum required return in august

Answer

Minimum required return in august will be $59320

Explanation:

We have given the west division of Cecchetti Corporation had average operating assets of $638,000

Net operating income = $78000

Minimum required rate of return = 14 % = 0.14

We have to find the minimum required return in august

Minimum required return is given by

Minimum required return = Average assets × minimum return rate

50/50

Explanation:

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