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A Profit Centre's manager performance is being evaluated and is being criticized as the Division posted a loss of Rs. 20,000. The division's sale is
A Profit Centre's manager performance is being evaluated and is being criticized as the Division posted a loss of Rs. 20,000. The division's sale is Rs. 500,000 while its variable cost is Rs. 270,000 (out of this Rs. 200,000 is related to the cost of the various component while Rs.70,000 is allocated). Further, the Division's total fixed cost is Rs. 250,000 (out of this total cost, Rs. 150,000 is related to advertising and marketing cost which was undertaken by the manager whilst remaining is allocated). Calculate and check the division's performance (and give brief comments regarding why there is a change in profit or loss)*
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