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Q. Show the example on residual income?
Division A makes and sells a single product and is assessed by the residual income it earns, the head office of the group uses a 10% cost of capital.
Forecast information:
Sales 50000 units
Variable cost per unit £5
Fixed cost £45,000
Depreciation £23,500
Net assets £360,000
What price must division A charge to earn a residual income of £64,700?
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what is equivalent INR amount stand for
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