A В Net earnings for division P 40,000 P 260,000 Asset base for division P100,000 P1,200,000 Target rate of return 15% 18% Margin 10% 20%

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter14: Decentralized Operations
Section: Chapter Questions
Problem 3SEQ: Division A of Kern Co. has sales of $350,000, cost of goods sold of $200,000, operating expenses of...
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XYZ Company has two divisions, A and B. Information for each division is as follows:
A
Net earnings for division
P 40,000
P 260,000
Asset base for division
P100,000
P1,200,000
Target rate of return
15%
18%
Margin
10%
20%
Weighted average cost of capital
12%
12%
What is the total sales amount for B?
1. P666,667
2. P800,000
3. P1,300,000
4. P1,200,000
O 1
O 2
O 3
O 4
Transcribed Image Text:XYZ Company has two divisions, A and B. Information for each division is as follows: A Net earnings for division P 40,000 P 260,000 Asset base for division P100,000 P1,200,000 Target rate of return 15% 18% Margin 10% 20% Weighted average cost of capital 12% 12% What is the total sales amount for B? 1. P666,667 2. P800,000 3. P1,300,000 4. P1,200,000 O 1 O 2 O 3 O 4
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