For the past year, the minimum required rate of return was:

A) 30%
B) 12%
C) 15%
D) 6%

Residual income = Net operating income - (Average operating assets × Minimum required rate of return)
$15,000 = $45,000 - ($250,000 × Minimum required rate of return)
$250,000 × Minimum required rate of return = $45,000 - $15,000
$250,000 × Minimum required rate of return = $30,000
Minimum required rate of return = $30,000 ÷ $250,000 = 12%
Reference: CH10-Ref17
The Hum Division of the Ho Company reported the following data for last year: