Calculate return on investment for each segment

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Reference no: EM133102036

Question - Two segments (Mountain Bike and Road Bike) showed the following data for the most recent year:

 

Mountain Bike

Road Bike

Contribution to indirect expenses

840,000

504,000

Assets with directly used by and identified with the segment

2,520,000

2,184,000

Sales

3,360,000

6,720,000

Required -

a. Calculate return on investment for each segment in the most direct manner.

b. Calculate return on investment using the margin and turnover components.

Reference no: EM133102036

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