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QUESTION 3 The following results are available for Division X and Y: Division X Division Y Profit before interest and tax P185 000 P172, 000

QUESTION 3 The following results are available for Division X and Y: Division X Division Y Profit before interest and tax P185 000 P172, 000 Capital employed P1, 540, 000 P1, 650, 000 The cost of capital is 10%. Comment on the performance of the departments based on: a. Return on capital employed (4 marks) b. Residual income (4 marks)

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