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Yonex India Ltd. is segmented into three divisions A, B and C. All were formed in the same year and

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Yonex India Ltd. is segmented into three divisions A, B and C. All were formed in the same year and now all assets have left exactly one-half of their expected life. Top management is attempting to determine which of the division is the most profitable. The following data have been prepared for your analysis: 

Prepare rankings of the three divisions using ROI and RI with a capital charge of 12.5% that each division manager might use to assert that his is the most profitable division.

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Net income before taxes Investment base-gross book value Investment base-net book value A (Rs.) 78,000 3,90,000 1,95,000 Division B (Rs.) 90,000 5,00,000 2,50,000 C (Rs.) 96,000 6,00,000 3,00,000

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Cost Accounting

Cost Accounting

ISBN: 9780070221628

4th Edition

Authors: Jawahar Lal, Seema Srivastava

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Question Details
Chapter # 21- RESPONSIBILITY ACCOUNTING AND DIVISIONAL PERFORMANCE MEASUREMENT..
Section: Problem
Problem: 1
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Question Posted: September 08, 2023 05:49:45
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