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The management of International Heal Medical Company is evaluating the performance of its three
(3) divisions. The Booboo Division had an operating profit of ₱24,950 and, on average used assets with
a book value of ₱311,900. The Splint Division had an operating profit of ₱17,500 and used average
assets of ₱177,950. The Intensive Care Division had an operating profit of ₱28,500 and average assets
of ₱475,000. The company plans to award the Intensive Care Division, relying on its high operating
profit. Should the management continue with this decision? Justify your answer
Sagot :
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