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An investment co.has following forecast for the next financial year
Operating profit before depreciation 85000.
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Sir, I want to know why 2500 of divisional profit is not added here ,instead it shows 2500 deducted from the profitIt 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.
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