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Management · Q366

Management Accounting

Graduate and Post Graduate · Management · question 366

Q366

If invested capital is 150000 and target rate of return on investment is 16%, then target annual operating income would be

A.
$27,000
B.
$26,000
C.
$24,000
Answer
D.
$25,000

Answer: Option C

Solution

Answer: Option C
Solution:
Target annual operating income = Invested capital × Target rate of return on investment
= 24,000.
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