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Please help me solve this Qs 4 1. The Tronjean Clothing Co. is planning its 2021 operational budget. Average Operating Assets are Rs 1,500,000 and
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Qs 4 1. The Tronjean Clothing Co. is planning its 2021 operational budget. Average Operating Assets are Rs 1,500,000 and Selling prices per unit are expected to be Rs 100 each. Variable costs of the company are budgeted at Rs 400,000 while the Annual Fixed Costs are Rs 250,000. The company's required rate of return (cost of Capital) is 18% p.a. a) Calculate the unit volume sales so Tronjean achieves a 20% ROI. b) The CEO of Tronjean, Ms Kay Tron receives a bonus of 50% of the Residual Income. What is her anticipated bonus for 2021 assuming the company achieves the 20% ROIStep by Step Solution
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