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If invested capital is 150000 and target rate of return on...

This question belongs to Management Management Accounting
Management Accounting
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If invested capital is $150000 and target rate of return on investment is 16%, then target annual operating income would be

Answer & Solution
Correct Answer: Option C
Target annual operating income = Invested capital × Target rate of return on investment
= $150000 × 16% = $24,000.
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