The West Division of Frede Corporation Had Average Operating Assets

question 38

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 residual income in December?

• A)$8,800
• B)($19,328)
• C)($8,800)
• D)$19,328

---

Definitions:

Psychological

relates to the mind or mental processes, especially in connection to behaviors and emotions.

Mental

Mental pertains to the mind and its processes, including thinking, feeling, and perception.

Physical

Refers to the aspects of things that are tangible and perceptible through senses.

Physiological Effect

The impact of various factors on the physical functions of an organism, often referring to the body's responses to external stimuli.