ROCeForums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › ROCeThis topic has 1 reply, 2 voices, and was last updated 3 years ago by John Moffat.Viewing 2 posts - 1 through 2 (of 2 total)AuthorPosts November 3, 2021 at 2:36 pm #639847 AnonymousInactiveTopics: 44Replies: 26☆☆I do have a problem that how the ROCE in both division is same?Question#1Division X: Revenue = 50,000 Operating costs = 20500 Fixed cost = 11000 Profit = 18,500 Capital employed = 150,000Division Y: Revenue = 40,000 Operating costs = 18000 Fixed cost = 12000 Profit = 10,000 Capital employed = 100,000Half of the Fixed costs for each division are allocated to head office expenses. November 3, 2021 at 3:33 pm #639861 John MoffatKeymasterTopics: 57Replies: 54701☆☆☆☆☆Given that half of the fixed costs are head office expenses, they are not controllable by the divisions.Therefore the controllable profit in division X is 18,500 + 5,500 = 24,000, and the ROCE is therefore 24,000/150,000 = 16%.For division Y, the controllable profit is 10,000 + 6,000 = 16,000, and the ROCE is 16,000/100,000 = 16%.AuthorPostsViewing 2 posts - 1 through 2 (of 2 total)You must be logged in to reply to this topic.Log In Username: Password: Keep me signed in Log In