The West Division of Frede Corporation Had Average Operating Assets

Multiple Choice

The West Division of Frede Corporation had average operating assets of $700,000 and net operating income of $120,800 in December. The minimum required rate of return for performance evaluation purposes is 16%. What was the West Division's minimum required return in December?

A) $112,000
B) $120,800
C) $131,328
D) $19,328