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Question Four b) i) Compute the return on investment for each of the subsidiary. Return on Investment (ROI) is calculated as: ROI = Operating IncomeAverage Total Assets The problem states that the company does not allocate corporate headquarters' costs or interest on long-term debt to the subsidiaries. Therefore, the operating income for each subsidiary should be calculated before these unallocated costs. From the table: Total Operating Income = £1,020,000 Total Variable cost of H = $240,000 + 300,000 + 480,000 = £1,0