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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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