The West Division of Cecchetti Corporation had average operating assets of $643,000 and net operating income of $100,000 in August. The minimum required rate of return for performance evaluation purposes is 18%. What was the West Division's minimum required return in August?

The West Division of Cecchetti Corporation had average operating assets of $643,000 and net operating income of $100,000 in August. The minimum required rate of return for performance evaluation purposes is 18%. What was the West Division's minimum required return in August?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter10: Decentralization: Responsibility Accounting, Performance Evaluation, And Transfer Pricing

Section: Chapter Questions

Problem 18E: The following selected data pertain to the Argent Division for last year: Required: 1. How much is...

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The West Division of Cecchetti Corporation had average
operating assets of $643,000 and net operating income
of $100,000 in August. The minimum required rate of
return for performance evaluation purposes is 18%. What
was the West Division's minimum required return in
August?

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