Acb Ltd. (mcs-2008) Numerical

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ACB ltd. (MCS-2008) Numerical
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Analyze and comment upon performances of both the divisions​
Solutions:​
Division X
ROI = (Profit / investment)* 100​
Profit = (28/100)*25lacs​
= 7lacs​

Profit margin = (Profit/sales)*100​
= (7/100)*100​
= 7lacs​

Turnover of investments = (Sales/investment)*100​
= (100/25)*100​
= 4 times​

Division Y
ROI = (Profit / investment)* 100
Profit = (26/100)*100lacs
= 26lacs

Profit margin = (Profit/sales)*100
= (26/500)*100
= 5.2lacs

Turnover of investments = (Sales/investment)*100
= (500/100)*100
= 5 times

Profit margin of X is better than profit margin of division Y. Turnover of investment of division Y is better thanDivision X.

Hence cost management of Division X is better than Division Y.
 
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