PEV June 2009 - RONA and ROCE

twinmeister

The answers for section 2.1 b iii) refer to RONA (return on net assets). Is this just another way of saying ROCE?

jilt

Have a look at this thread

http://forums.aat.org.uk/showthread.php?t=26909&highlight=rona

twinmeister

Same exam 2.2 a) I got £1,800,000 extra profit, but answer given is £2,400,000?

My calcs
Sales £10,200,000 (1.2m x £8.50)
COS £5,100,000 (1.2 x £4.25)
GP £5,100,000
S&D £400,000
Admin £750,000
Advertising £500,00
Net profit £1,800,000

What did I do wrong?

twinmeister

magnificent jilt, thanks for thread link. Looks like Sandy knows his stuff!!!

Jimmyboy1888

Hi,

New cost of material is 0.50 cheaper (1200000 x 3.75) = 4500000 cost of sales

twinmeister

Brilliant Jimmyboy - thanks so much. I can move on to next paper and stop scratching head.
ta again :-)