Balloo has adopted a divisionalised organisational structure and produces a product. The following information is available, however with some data missing:

Required

1. CALCULATE the missing values (a), (b), (c), (d), and (e), assuming the required cost of capital is equal for all divisions. Show your workings.
2. EXPLAIN two advantages and two disadvantages of a divisionalised organisational structure.

Profit () Capital employed () Return on investment () Residual income () Division A 1 600 000 (a) 20% 700 000 Division B 800 000 (b) 16% (d) Division C 1 200 000 4 800 000 (c) (e)