Beautyme Ltd has 2 divisions. Division A has a Profit of £350,000 after charging the allocated head office costs of £55,000. Division B has a Profit of £450,000 after charging the allocated head office costs of £85,000. Beautyme Ltd has invested £1.5 million in each of the 2 divisions and requires a return of 15% Calculate the Return on Investment (ROI) and Residual Income (RI) for both divisions

Beautyme Ltd has 2 divisions. Division A has a Profit of £350,000 after charging the allocated head office costs of £55,000. Division B has a Profit of £450,000 after charging the allocated head office costs of £85,000. Beautyme Ltd has invested £1.5 million in each of the 2 divisions and requires a return of 15% Calculate the Return on Investment (ROI) and Residual Income (RI) for both divisions

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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