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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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