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For Q4a, I said she does not deserve any bonuses, as:
1. The total revenue should have been adjusted by 600 (4000 + 4000x(1-0.15) = 7400), so a (600) c.u. less to profit;
2. Depreciation – I’ve adjusted 350 c.u. as (385 – 350), assuming that purchase and put in service of new equipment has impacted significantly the npm, whilst took 35 c.u. charge from domestic unit as a reference point. Anyway, it’s an assumption;
3. As for HQ costs’ allocation – i did nothing, however I was very clear in supposing that both domestic and export divisions are in the same conditions (same split structure, based on revenue approach), so even if not controlled by the manager, it’s more or less fair to charge the Export division, also considering that Domestic division has been charged too, however it has reached the 8% threshold. I can’t recall the exact figures, but I got around 5% npm. Anybody followed any of my steps?
