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Division X Division Y Profit before interest and tax P185,000 P172,000 Capital employed P1,540,000 P1,650,000 The cost of capita is 10% Comment on the performance

Division X

Division Y

Profit before interest and tax

P185,000

P172,000

Capital employed

P1,540,000

P1,650,000

The cost of capita is 10%

Comment on the performance of the divisions based on:

a. Return on capital employed

B. Residual income

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