Balloo has adopted a divisionalised organisational structure and produces a product The following information is available, however with some data missing Required CALCULATE the missing values (a), (b), (c), (d), and (e), assuming the required cost of capital is equal for all divisions Show your workings EXPLAIN two advantages and two disadvantages of a divisionalised organisational structure Profit () Capital employed () Return on investment () Residual income () Division A 1 600 000 (a) 20 700 000 Division B 800 000 (b) 16 (d) Division C 1 200 000 4 800 000 (c) (e)

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Question: Balloo has adopted a divisionalised organisational structure and produces a product. The following information is available, however with some data missing: Required CALCULATE the missing

Balloo has adopted a divisionalised organisational structure and produces a product. The following information is available, however with some data missing: Profit (€) Capital employed (€) Return on investment (€) Residual income (€) Division A 1 600 000 (a) 20% 700 000 Division B

Required

CALCULATE the missing values (a), (b), (c), (d), and (e), assuming the required cost of capital is equal for all divisions. Show your workings.
EXPLAIN two advantages and two disadvantages of a divisionalised organisational structure.

Profit () Capital employed () Return on investment () Residual income () Division A 1 600 000 (a) 20% 700 000 Division B 800 000 (b) 16% (d) Division C 1 200 000 4 800 000 (c) (e)

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