Question: Pls solve this question correctly instantly in 5 min i will give u 3 like for sure Divisionalisation ACCA Exam Question Sliced Bread plc is

Pls solve this question correctly instantly in 5 min i will give u 3 like for sure

Pls solve this question correctly instantly in 5
Divisionalisation ACCA Exam Question Sliced Bread plc is a divisionalized company. Among its divisions are Grain and Bakery. Grain's operations include granaries, milling and dealings in the grain markets; Bakery operates a number of bakeries. The following data relate to the year ended 30 November: Grain Bakery 000 000 Sales 44,000 25,900 Gain on sale of plant 900 44,006 25,306 Direct labour 3,700 ?,950 Direct materials 25,600 10,200 Depreciation 3'00 1,100 Divisional overheads 5,300 4,550 Head ofce costs (allocated) 440 268 40,740 24,068 Grain Bakery 000 000 Fixed assets (at cost less accumulated depreciation) 7,000 9,000 5,350 1,300 Stocks Trade debtors 4,000 2,100 Cash at bank 1,500 Bank overdraft 7'50 Trade creditors 3,000 2,150 Divisional managements (DMs) are given authority to spend up to 20 000 on capital items as long as total spending remains within an amount provided for small projeds in the annual budget. Larger projects, as well as sales of assets with book values in excess of E20000, must be submitted to central management (CM). All day-to-day operations are delegated to 0105, whose performance is monitored with the aid of budgets and reports. The basis for appraising DM performance is currently under review. At present divisions are treated as investment centres for DH performance appraisal, but there is disagreement as to whether return on capital employed or residual income is the better measure. An alternative suggestion has been made that DM performance should be appraised on the basis of controllable profit; this measure would exclude depreciation and gains or loss-E on sale of assets, treating invesbnent in xed assets as a CM responsibility. The cost of capital of Sliced Bread pic is 15% per annum. Requirements (a) Calculate for both divisions the three measures (return on capital employed, residual income and controllable profit) which are being considered by Sliced Bread

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