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CIMA Advanced Management Accounting P2 Question # 51 Topic 6 Discussion

CIMA Advanced Management Accounting P2 Question # 51 Topic 6 Discussion

P2 Exam Topic 6 Question 51 Discussion:
Question #: 51
Topic #: 6

Division A is an investment centre with assets of $7.3 million. The following is an extract from the annual budget for division A:

P2 Question 51

The cost of capital is 14%.

Calculate the residual income for division A.


A.

$808,000


B.

$1,727,800


C.

$358,000


D.

$2,008,000


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