A. $27,000
B. $26,000
C. $24,000
D. $25,000
✅ The correct answer is option C.
Target annual operating income = Invested capital × Target rate of return on investment
= $150000 × 16% = $24,000.
Target annual operating income = Invested capital × Target rate of return on investment
= $150000 × 16% = $24,000.