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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