The West Division of Cecchetti Corporation Had Average Operating Assets

Multiple Choice

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?

A) $102,500
B) $110,880
C) $16,400
D) $127,280