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An investment co.has following forecast for the next financial year
Operating profit before depreciation 85000.
Hope u find this problem
Sir, I want to know why 2500 of divisional profit is not added here ,instead it shows 2500 deducted from the profit
It is because they are considering selling a machine that at the moment is expected to make 2,500 profit. If they sell it then they won’t make this profit and so the forecast profits will be lower.
Ok,thankyou sir
You are welcome 🙂