Show the example on residual income, Strategic Management

Assignment Help:

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?


Related Discussions:- Show the example on residual income

Effect of support on negative affect, There is wide support from government...

There is wide support from government agencies for people to exercise and indeed take part in sport. For many sportspeople, however, injury plays a part in their day-to-day sportin

Framework for a company to manage its application portfolio, Question 1: ...

Question 1: (a) Explain a framework for a company to manage its application portfolio. (b) Apply the application portfolio concept to show the different applications for a

Determine the level of rents of social housing, Explain what is meant by 'n...

Explain what is meant by 'non-market housing' and by what means it is delivered in either the UK or a country of your choice. What problems arise in its delivery? Outl

Stakeholders, Ask What advantages are there to employees as stakeholders ar...

Ask What advantages are there to employees as stakeholders are available in Germany that are not provided to employees in US companies? In the United States, how do employees let

Explain about value based management, Q. Explain about Value based manageme...

Q. Explain about Value based management? Value based management (VBM) is an approach which focuses on strategies and actions to create more value for shareholders.  Value being

Find the optimal solution, - Middle-East Incorporated (MEINC) Oil blends ga...

- Middle-East Incorporated (MEINC) Oil blends gasoline from the following components: Domestic Blend, Foreign Blend Source 1, Foreign Blend Source 2, and an Octane Additive used on

Strategy Formulation, # 14 Strategy formulation presupposes a set of goals ...

# 14 Strategy formulation presupposes a set of goals and objectives. Why aren''t goals and objectives obvious? What characteristics of people and organizations can make setting goa

Explain two-part tariff system, Q. Explain Two-part tariff system? With...

Q. Explain Two-part tariff system? With a two-part tariff system the buyer is charged: A transfer price equal to the seller's variable (marginal) cost for each unit sold

#title ..core competencies , a. Core competencies are the collective ____...

a. Core competencies are the collective __________ in the organization

Describe the key characteristics of a role culture, S Company has for many ...

S Company has for many years been a long standing household name, designing and manufacturing electrical appliances for use in the kitchen. It has developed a strong culture over t

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd