Division Q makes a single product. Information for the division for the year just ended it:
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| Fixed costs | £487 000 |
| Depreciation | £247 500 |
| Residual income | £47 200 |
| Net asset | £1 250 000 |
Head office assesses divisional performance by the residual income achieved. It uses a cost of capital of 12% a year.
Division Q’s average contribution per unit was
A £14.82
B £22.81
C £28.06
D £31.06
E £32.81
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