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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.
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