An insurance company, Riskmore, has four divisions: car, home, personal and miscellaneous.

These four divisions account, respectively, for 40%, 30%, 20% and 10% of sales and 25%

each of the variable costs. Riskmore has the following summary profit and loss account. L01

=

Sales 200,000 Less: Costs Variable costs 100,000 Fixed costs 50,000 Net Profit 50,000 Required:

ee Calculate the profitability of the divisions.