Bremen AG is a large German manufacturing group. It has two divisions in Northern Ireland, Divisions A and B, both of which are evaluated as investment centres. Extracts from the internal income Statements of the two divisions for the year ended 31 December 2022 are shown below: Division A Division B E000 Sales 8.010 5.800 Divisional variable costs 3,050 1,600 Divisional fixed costs 3,200 2,400 Divisional contribution 1,760 1,800 Allocation of corporate-level costs (non-controllable) 750 600 Divisional profit 1,010 1,400 Additional information is available as follows: 1) The group cost of capital is 6.5% 2) The net assets at 31/12/2022 was: Division A, $3.1m, Division B, $5.2m 3) During the 2022 year, both divisions engaged advertising campaigns at a cost of $75,000 (Division A) and $90,000 (Division B). These amounts are included in the fixed cost above. However, both division managers are confident that their division will benefit from these campaigns for the years 2022 to 2024 inclusive. 4) Also during the 2022 year, Division A incurred research and development expenditure of $25,000, Division B similarly incurred $90,000 expenditure. This expenditure is included in the fixed costs above and is expected yield a benefit for five years, 2022 to 2026. 5) The corporate-level costs are not allocated on any basis related to each division's activity. Rather they are amounts agreed in the past and increased by 2-3% each year.Requirement (a) Based on the information giving, calculate the return on investment and the Economic Value Added for each division. 13 Marks (b) Explain whether or not the present method of allocating corporate-level costs helps in attaining a realistic view of each division's performance. Identify a better method of allocating such costs. 5 marks (c) Explain one other divisional performance measure which could be used at Division A and B, mentioning one advantage and disadvantage of it. 7 Marks Total 25 Marks