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Operating result for a division for 2019 are budgeted as follows Revenue =7,000,000 Var cost =1,500,000 Contribution margin =3,500,000 Fixed expense = 1,500,000 Net operating
Operating result for a division for 2019 are budgeted as follows
Revenue =7,000,000
Var cost =1,500,000
Contribution margin =3,500,000
Fixed expense = 1,500,000
Net operating income=500,000
Operating assets = 5,000,000
Planning to add new investment of 1,070,000 which will generate income of 1,500,000, fixed expense of 300,000, the variable price will be 50% of the selling price. cost of capital is 15%.. Find the performance measure that could create a underinvestment problem and performance measure that could reduce under investment problem
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