Calculate the Beverage Division's return on investment that should be used to measure the management of the division's performance
Question 4
The following information relates to the beverage division of Namibia Wholesalers.
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N$ |
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Sales revenue |
6 870 000 |
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Uncontrollable fixed costs traceable to the division |
2 040 000 |
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Allocated corporate |
885 000 |
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Controllable fixed costs traceable to the division |
1 680 000 |
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Motor vehicles |
1 500 000 |
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Buildings |
900 000 |
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Fixtures and fitting |
2 225 000 |
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Trade payables |
(600 000) |
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Trade receivables |
750 000 |
The variable costs take up to 35% of sales.
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6.1. |
Compute the following for the Beverage Division: |
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6.1.1 Segment contribution margin; |
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6.1.2 Controllable profit margin; |
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6.1.3 Segment profit margin. |
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6.2. |
Calculate the Beverage Division's |
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