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32.Cornwall Company has two divisions, A and B. Information for each division is as follows: Net earnings for division B Asset base for division Target

image text in transcribed 32.Cornwall Company has two divisions, A and B. Information for each division is as follows: Net earnings for division B Asset base for division Target rate of return Margin Weighted average cost of capital What is the total sales amount for Division B? C a.$666,667 b.$800,000 c.$1,300,000 $40,000 $260,000 $100,000 $1,200,000 15% 18% 10% 20% 12% 12% d.$1,200,000 33.Cornwall Company has two divisions, A and B. Information for each division is as follows: Net earnings for division B $40,000 $260,000 Asset base for division $100,000 $1,200,000 Target rate of return 15% 18% Margin 10% 20% Weighted average cost of capital 12% 12% What is the residual income for Division A? a.$25,000 C b.$28,000 C c. $40,000 d.$15,000

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