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Alternative problem E Goodwin Company has three segments: 1, 2, and 3. Data regarding these segments follow: Segment 1 Segment 2 Segment 3 Contribution to

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Alternative problem E Goodwin Company has three segments: 1, 2, and 3. Data regarding these segments follow: Segment 1 Segment 2 Segment 3 Contribution to indirect expenses 432,000 208,800 $72,000 Assets directly used by and identified 3,600,000 1,440,000 360,000 with the segment a. Calculate the return on investment for each segment. Rank them from highest to lowest. b. Assume the cost of capital is 10% for a segment. Calculate the residual income for each segment. Rank them from highest to lowest. c. Repeat (b), but assume the desired cost of capital is 14%. Rank the segments from highest to lowest. d. Comment on the rankings achieved

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