GH Inc. has two divisions: A and B. During the year just ended, Division A had a segment margin of $60,000 and variable costs equal to 75% of sales. Traceable fixed costs for Division B were $60,000. GH Inc as a whole had a contribution margin of 30%, a segment margin of $75,000, Common costs of $10,000 and sales of $500,000.

GH Inc. has the following assets:

Cash$100,000

A/R50,000

Inventory10,000

Land500,000

Land held as an investment120,000

Buildings70,000

Equipment30,000

GH Inc. uses a capital charge of 12%.

1)Given this data, prepare segmented income statements showing the Total as well as amounts for Division A and B.

2)Calculate the ROI, asset turnover, margin and residual income for GH Inc.