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XYZ Company has two divisions, A and B. Information for each division is as follows:                                                                             A                                B 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? P666,667 P800,000 P1,300,000 P1,200,000 Group of answer choices 1 2 3 4

XYZ Company has two divisions, A and B. Information for each division is as follows:                                                                             A                                B 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? P666,667 P800,000 P1,300,000 P1,200,000 Group of answer choices 1 2 3 4

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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XYZ Company has two divisions, A and B. Information for each division is as follows:

                                                                            A                                B

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
Group of answer choices
1
2
3
4
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