1. Correll Company has two divisions, A and B. Information for each division is as follows: Division A B Operating Profit $40,000 $260,000 Investment in Division $100,000 $1,200,000 Weighted Average Cost of Capital 12% 12% Profit Margin Percentage 10% 20% What is the total sales revenue for Division B? A. $800,000 B. $666,667 C. $1,200,000 D. $1,300,000

2. The short-run differential costs of a product are $20. Fixed costs are $10 per unit based on 10,000 units produced during this period. The company has adequate capacity to accept a special order of 1,000 units. What is the minimum price that could be charged using the differential approach to pricing?

	A.	$20
	B.	$25
	C.	$5
	D.	$30