PEV June 2009 - RONA and ROCE

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twinmeister
twinmeister Registered Posts: 122 Dedicated contributor 🦉
The answers for section 2.1 b iii) refer to RONA (return on net assets). Is this just another way of saying ROCE?

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  • jilt
    jilt Registered Posts: 2,903 Beyond epic contributor 🧙‍♂️
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  • twinmeister
    twinmeister Registered Posts: 122 Dedicated contributor 🦉
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    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
    twinmeister Registered Posts: 122 Dedicated contributor 🦉
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    magnificent jilt, thanks for thread link. Looks like Sandy knows his stuff!!!
  • Jimmyboy1888
    Jimmyboy1888 Registered Posts: 32 Regular contributor ⭐
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    Hi,

    New cost of material is 0.50 cheaper (1200000 x 3.75) = 4500000 cost of sales
  • twinmeister
    twinmeister Registered Posts: 122 Dedicated contributor 🦉
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    Brilliant Jimmyboy - thanks so much. I can move on to next paper and stop scratching head.
    ta again :-)
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