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

A) 0.80.
B) 0.32.
C) 1.25.
D) 1.50.

Residual Income

Profit remaining after deducting all costs, including the cost of capital, usually used in managerial accounting as a performance measure.

Minimum Required Rate of Return

The lowest rate of return that a potential investment must offer to be considered acceptable, taking into account the investor's cost of capital and risk appetite.

Annual Turnover

The total sales or revenue a company generates in one year.