C) Eastern Western Segment Margin 400,000 200,000 / Average Assets 14,000,000 12,000,000 Return on Asset 2.86% 1.67% d) Eastern FastTrak Rowmaster Sales 1,350,000 600,000 750,000 Variable Cost 720,000 270,000 450,000 Contribution Margin 630,000 330,000 300,000 Traceable Fixed Cost 230,000 80,000 150,000 Segment Margin 400,000 250,000 150,000 Common Fixed Costs 120,000 Operating Income 280,000 The common fixed should not be made part of the computation of segment margin. Segment margin or responsibility margin should present the amount of profit that is being contributed by the segment to the overall profitability of the company and must therefore include only cost which are traceable to the segment.Eastern FastTrak Rowmaster a) Sales 1,350,000 600,000 750,000 Variable Cost 720,000 270,000 450,000 Contribution Margin 630,000 330,000 300,000 Traceable Fixed Cost 230,000 80,000 150,000 Segment Margin 400,000 250,000 150,000 b) Muscle Bound Eastern Western Sales 1,950,000 1,350,000 600,000 Variable Cost 990,000 720,000 270,000 Contribution Margin 960,000 630,000 330,000 Traceable Fixed Cost 360,000 230,000 130,000 Segment Margin 600,000 400,000 200,000 Common Fixed Costs 180,000 Operating Income 420,000 c) Eastern Western Segment Margin 400,000 200,000 / Average Assets 14,000,000 12,000,000 Return on Asset 2.86% 1.67%