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The following data are available for the South Division of Redride Products, Inc. and the single product it makes: Unit selling price: 20 Variable cost

The following data are available for the South Division of Redride Products, Inc. and the single product it makes:

Unit selling price: 20

Variable cost per unit: 12

Annual fixed cost: 280,000

Average operating assets: 1,500,000

If South wants a residual income of $50,000 and the minimum required rate of return is 10%, the annual turnover will have to be:

A- 0.32 B- 0.80 C- 1.25 D- 1.50

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