The Consumer Products Division of Goich Corporation Had Average Operating

question 151

Multiple Choice

The Consumer Products Division of Goich Corporation had average operating assets of $800,000 and net operating income of $81,300 in May. The minimum required rate of return for performance evaluation purposes is 10%.
-What was the Consumer Products Division's minimum required return in May?

• A) $81,300
• B) $8,130
• C) $88,130
• D) $80,000

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Definitions:

Turnover

Refers to the rate at which employees leave a company and are replaced or the total sales revenue of a business within a specific period.

Forming Stage

The initial phase of team development where members come together, establish structures, and acquaint themselves with the group's purpose and each other’s backgrounds.

Acquainted

Having knowledge or experience of something, often referring to a person's familiarity with a subject, area, or person.