Kalanja Designs, which produces earrings, is developing direct material standards. Each earring requires.59

kilograms of a special metal. The allowance for waste is 1 kilograms per earring, while the allowance for rejects is

.2 kilograms per earring. What is the standard quantity of metal per earring?

A .70

B .59

C 1.79

D 1.59

The Box Manufacturing Division of the Allied Paper Company reported the following results from the past year. Shareholders require a return of 4%. Management calculated a weightedminusaverage

cost of capital (WACC) of 3%. Allied's corporate tax rate is

35%.

Sales	$900,000
Operating income	270,000
Total assets	$1,100,000
Current liabilities	500,000

What is the division's sales margin?

A 81.25%

B 30%

C 45.45%

D 24.55%