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4. Two segments (Mountain Bike and Road Bike) showed the following data for the most recent year: Mountain bike Road bike Mountain Road Bike Bike
4. Two segments (Mountain Bike and Road Bike) showed the following data for the most recent year: Mountain bike Road bike
Mountain Road
Bike Bike
Contribution to indirect expenses $ 840,000 $ 504,000
Assets directly used by and identified
with the segment 2,520,000 2,184,000
Sales 3,360,000 6,720,000
a. Calculate return on investment for each segment in the most direct manner. b. Calculate return on investment using the margin and turnover components.
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