Answer:
11.56%
Explanation:
The computation of the minimum required rate of return is shown below:
Residual income = Net operating income - (Average operating assets × minimum required rate of return)
$22,000 = $59,000 - ($320,000 × minimum required rate of return)
After solving this the minimum required rate of return is 11.56%
By applying the above formula we can find out the minimum required rate of return
Answer:
The correct answer to the following question will be "$76,986".
Explanation:
Although the organization is reportedly going to pay $14.00 per unit, even before manufactured throughout the corporation, cost and save per unit will become the variation among current value as well as production costs without set rate. The cost of operating expenses will not be included to measure the gain because the idle resources of the company would be included and would not raise the fixed costs.
Therefore the cost differential would be as follows:
⇒ 
On putting the values in the above formula, we get
⇒ 
⇒ 
⇒ 
The structure that ABC Motors uses in that they have divisions according to the vehicle produced is the Product Structure.
<h3>What is the Product Structure?</h3>
This is a structuring technique in companies where they come up with departments based on what those departments produce.
Departments that produce the same product are put into one division to ensure efficiency. This is what ABC Motors did by setting up divisions based on vehicle model.
Find out more on division structures at brainly.com/question/6369558.
