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