What was the Bread Division's minimum required rate of return last year?A. 12%B. 4%C. 15%D. 20% The following information relates to last year's operations at the Bread Division ofRison Bakery, Inc.:Residual incomeP12,000Р60,000Net operating incomeSalesР300,000Average operating assetsP400,000

The residual income is calculated as difference between operating income and desired income.

The following information relates to last year's operations at the Bread Division Rison Bakery, Inc.: Residual income P12,000 Net operating income P60,000 Sales P300,000 Average operating assets P400,000

The following information relates to last year's operations at the Bread Division Rison Bakery, Inc.: Residual income P12,000 Net operating income P60,000 Sales P300,000 Average operating assets P400,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

What was the Bread Division's minimum required rate of return last year?

A. 12%
B. 4%
C. 15%
D. 20%

The following information relates to last year's operations at the Bread Division of
Rison Bakery, Inc.:
Residual income
P12,000
Р60,000
Net operating income
Sales
Р300,000
Average operating assets
P400,000

Definition Definition Percentage gain or loss from a specific investment over time. The rate of return is the difference between the closing and initial values of an investment divided by the initial value of the investment. The closing value includes any intermediate cash flows such as dividends or interest amounts.

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