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The Box Manufacturing Division of the Allied Paper Company reported the following results from the past year. Shareholders require a return of 9%. Management calculated
The Box Manufacturing Division of the Allied Paper Company reported the following results from the past year. Shareholders require a return of 9%. Management calculated a weighted - average cost of capital (WACC) of 2%. Allied's corporate tax rate is 35% Sales $900,000 Operating income 270.000 Total assets 1.700.000 Current liabilities 700.000 What is the division's sales margin? O A. 15.88% O B. 52.94% O C. 41.18% OD. 30.00% The following selected data relates to Green with Envy Corporation: Total fixed costs $20,000 Selling price per unit Variable costs per unit $19 Assuming 8.200 units are sold, what is the contribution margin? $30 O A. $70,200 OB. $246,000 OC. $90,200 OD. $110,200
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