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for part (a), (1), in the answers
I am confused about the working s about why the depreciation was added to the net profit and also the head office cost.The question specifically says that the ROI is to be calculated using the controllable profit (as is usually the case for the ROI).
The depreciation and the head office costs are controlled by the head office and not by the division.I know it’s controllable profit but the part I am not understanding is the head office cost.
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