Correll Company Has Two Divisions, a and B -Refer to the Figure

question 76

Multiple Choice

Correll Company has two divisions, A and B. Information for each division is as follows:
$\begin{array}{lcc}& \underline{\text { A}}& \underline{\text { B}}\\\text { Net earnings for division } & \$ 40,000 & \$ 260,000 \\\text { Asset base for division } & \$ 100,000 & \$ 1,200,000 \\\text { Target rate of return } & 15 \% & 18 \% \\\text { Margin } & 10 \% & 20 \% \\\text { Weighted average cost of capital } & 12 \% & 12 \%\end{array}$
-Refer to the figure.What is the total sales amount for B?

• A)$666,667
• B)$800,000
• C)$1,200,000
• D)$1,300,000

---

Definitions:

School Performance

The assessment of a student's academic work, usually based on grades, test scores, and other evaluations.

Theodore Simon

A French psychologist who, together with Alfred Binet, developed the first intelligence test known as the Binet-Simon scale.

Intelligence

The ability to acquire and apply knowledge and skills, involving processes such as reasoning, learning, and problem-solving.

Hereditary Genius

A concept suggesting that genius or exceptional ability is inherited genetically from one's ancestors.