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nataly862011 [7]
3 years ago
10

The West Division of Cecchetti Corporation had average operating assets of $240,000 and net operating income of $42,200 in Augus

t. The minimum required rate of return for performance evaluation purposes is 19%. What was the West Division's residual income in August
Business
2 answers:
MrRissso [65]3 years ago
7 0

Answer:

Correct answer is $45,600

Explanation:

Average operating assets x Minimum required rate of return= $45,600 $240,000 * 19% = $45,600

professor190 [17]3 years ago
5 0

Answer: See explanation

Explanation:

West Division's residual income in August would be calculated as the difference between the Net Operating Income and the Minimum Required Return.

= $42,200 – ($240,000 x 19%)

= $42,200 - $45,600

= $(3,400) Negative

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