Apple Inc. is one of the country's most successful computer technology companies. The company designs, manufactures, and sells computers, digital music devices, communication devices, and various software products. The company's net income has increased each year since 2002, and in 2011, Apple sold 16.735 million computers, 42.620 million iPods, 32.394 million iPads, and 72.293 million iPhones. Information relating to the company's business segments can be found in the company's annual report, an excerpt of which follows.

1. Where does Apple generate most of its revenues? Its profits?
2. The profitability of each dollar of revenue is measured by the ratio (Operating income/Net sales). Compute this ratio for each of Apple's five operating segments in 2011. Which segment has the highest profitability per dollar of revenue?
3. The extent to which a segment uses its assets to efficiently generate revenues is measured by the ratio (Net sales/Assets). Compute this asset turnover ratio for each of Apple's five operating segments in 2011. Which segment has the highest number of dollars of revenue generated for each dollar of assets?
4. The return on assets ratio (Operating income/Assets) measures how well a segment combines profitability and efficiency to generate profits with the existing assets. Compute return on assets for each of Apple's five operating segments in 2011. Which segment has the highest operating profit generated for each dollar of assets?
5. Based on your answers to parts (1) and (2), how critical is Apple's Retail segment to the company's overall success? Before you answer this question, think about how the company is able to sell and promote its computers and other products.

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Net Sales by Operating Segment: 2011 2010 2009 Americas net sales Europe net sales Japan net sales Asia-Pacific net sales Retail net sales Total net sales. 38,315$24,498 27,778 18,692 3,981 8,256 9,798 $108,249 $65,225 $18,981 11,810 2,279 3,179 6,656 $42,905 5,437 22,592 14,127 Operating Income Americas Europe Japan Asia-Pacific Retail. Other corporate expenses, net (a) Stock-based compensation expense Total operating income Assets Americas Europe Japan Asia-Pacific Retail. Corporate Assets Total Assets 13,538$ 7,590 7,524 1,846 3,647 2,364 (3,707) (879) S 33.790 18.385 $11,740 11,528 2,481 9,587 3,344 (5,520) (1,168) 6,658 4,296 961 1,100 1,677 (2,242) 3,807 2,809 1,926 991 1,622 1,829 66,006 116,371$75,183 2,985 804 1,913 2,940 103,922 1,896 1,352 483 529 1,344 41,897 $47.501