Prewitt & Webster Plc Organizes Its Activities into Divisions

Multiple Choice

Prewitt & Webster plc organizes its activities into divisions.Head office determines investment policy and makes all capital expenditure decisions.At a divisional level managers control costs, fix selling prices, determine sales strategy and managerial salaries.Marketing, including advertising, is managed at head office. Division A incurred the following costs and earned the following revenue during the 20X2 financial year:
What was the total of controllable profit for the 20X2 financial year for A division (in £000s) ?

A) £261
B) £349
C) £387
D) £153