Question: Prepare and income statement for two segments using the contribution margin format: calculate the return on investment for (1) the entire company, and (2) each

 Prepare and income statement for two segments using the contribution margin

Prepare and income statement for two segments using the contribution margin format: calculate the return on investment for (1) the entire company, and (2) each segment The following data pertain to the operating revenues and expenses for Golden State Company for 2014. Regarding the company's total operating assets of $900,000, the following facts exist: a. Prepare a statement showing the contribution margin of each segment, the contribution to indirect expenses of each segment, and the total income of Golden State Company. Less: Variable expenses Contribution margin Less: Direct fixed expenses Contribution to indirect expenses Less: Indirect fixed expenses Operating income b. Determine the return on investment for evaluating (1) the earning power of the entire company and (2) the performance of each segment. 1) Company ROI: __________ % 2) LA Segment ROI: ___________ % 3) SF Segment ROI: __________ %

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