The West Division of Frede Corporation had average operating assets of $623,000 and net operating income of $90,000 in December. The minimum required rate of return for performance evaluation purposes is 15%.

What was the West Division's minimum required return in December?

$90,000

$93,450

$13,500

$106,950

Last year the Uptown Division of Gorcen Enterprises had sales of $300,000 and a net operating income of $24,000. The average operating assets at Uptown last year amounted to $120,000. Last year at Uptown the return on investment was:

8%

12%

20%

40%

The West Division of Frede Corporation had average operating assets of $700,000 and net operating income of $120,800 in December. The minimum required rate of return for performance evaluation purposes is 16%. What was the West Division's minimum required return in December?

$112,000

$120,800

$131,328

$19,328

The West Division of Frede Corporation had average operating assets of $700,000 and net operating income of $120,800 in December. The minimum required rate of return for performance evaluation purposes is 16%. What was the West Division's residual income in December?

$8,800

($19,328)

($8,800)

$19,328