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

Technical reference model, Describe the structure and role of the Tech...

Describe the structure and role of the Technical Reference Model (TRM) in the The Open Group Architecture Framework (TOGAF).  What is the purpose of this component?

Why should resources be a concern in a global strategy, Why should resource...

Why should resources be a concern in a global strategy

Three stage transformation model of inputs, Product manufacturing operation...

Product manufacturing operations can be described as a three stage transformation model of inputs. Inputs Inputs are intangible. Unlike a traditional product, a servic

Presentation on data requirements for the environment, Consider the Chester...

Consider the Chester River Health System (CRHS) Strategic Planning example. Taking information only from these two sources into account, formulate an Environmental Assessment of CR

Ray''s satellite emporium, Ray's Satellite Emporium wishes to verify the be...

Ray's Satellite Emporium wishes to verify the best order size of their best selling satellite dish (model TS111).  Ray has estimated the yearly demand for this model at 1,000 units

Mission statement, Craft a mission statement for agro based organization wh...

Craft a mission statement for agro based organization which makes it eligible for expansion

What are the benefits of elearning, Question : (a). How would you cat...

Question : (a). How would you categorise eBusiness/ eCommerce? (b). Explain how the use of Cookies in eBusiness/ eCommerce may impede on the privacy of an individual

Open group architecture framework, Discuss the following quotation and ...

Discuss the following quotation and please provide examples. Enterprise Architecture is an organising logic for managing change within an Information Systems environ

Show the modern methods of budgeting, Q. Show the Modern methods of budgeti...

Q. Show the Modern methods of budgeting? A flexible budgeting system produces many budgets projecting costs and revenues over different ranges of production or sales volumes.

Explain the concept of core competencies, Question 1: Explain the conce...

Question 1: Explain the concept of core competencies and its main characteristics. Describe the different ways by which core competencies can be developed in an organization.

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