Question: Exercise G The following data are available for Segment A of ABC Company: Net income of the segment $ 50,000 Contribution to indirect expenses 40,000
Exercise G
The following data are available for Segment A of ABC Company:
Net income of the segment
$ 50,000
Contribution to indirect expenses
40,000
Controllable income by manager
48,000
Assets directly used by the manager
360,000
Assets under the control of the segment manager
240,000
Determine the return on investment for evaluating (a) the income performance of the manager of
Segment A and (b) the rate of income contribution of the segment.
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