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Calculate the revised budgeted roa

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Reference no: EM133001376

Question - Assume that MP accepted the investment of 10 million GBP from Kan Enterprises and purchased new machinery to support additional sales. As a result of this investment, the asset base at the end of the year increases by 9 million GBP because depreciation of 1 million GBP on the new machinery is to be charged against profits. For output levels of 4,200,000 units and 4,500,000 units, respectively, and starting with your data from Questions 2 and 3 from Part A, calculate the revised budgeted ROA and budgeted directors' bonuses, and comment on your results.

Reference no: EM133001376

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