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Hello sir,
In qno.32)
In I) how do we get the figure for add back from on Monday controllable assets 49.5 and 13.8And under avg divisional net assets 19.3% and 17.7% ?
B i) how do we get the figure 1320 and 3240??
Under imputed charge on assetsMany thanks
Note 1 says that 30% of the depreciation costs relate to assets controlled by head office.
30% x $165,000 = 49,500, and 30% x $460,000 = $13,800.
The ROI is the controllable profit expressed as a % of the average assets.
2124.5 / 11,000 = 19.3%; 4,788 / 27,000 = 17.7%.The imputed interest is 12% of the average net assets.
I do suggest that you watch my free lectures on performance measurement!
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