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Business
Accounting
The following are available for divison X and Y    Profit before interest and tax  X 185 000  Y172 000 Capital employed  X 1 540 000  Y 1 650 000 The cost of capital is 10% comment on the performance of the departments based on  a. Return on capital employed b.residual income

The following are available for divison X and Y    Profit before interest and tax  X 185 000  Y172 000 Capital employed  X 1 540 000  Y 1 650 000 The cost of capital is 10% comment on the performance of the departments based on  a. Return on capital employed b.residual income

FINANCIAL ACCOUNTING
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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The following are available for divison X and Y 

 

Profit before interest and tax  X 185 000  Y172 000

Capital employed  X 1 540 000  Y 1 650 000

The cost of capital is 10%

comment on the performance of the departments based on 

a. Return on capital employed

b.residual income

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