Los Angeles (LA) Segment	San Francisco (SF) Segment	Total
Sales	$180,000	$360,000	$540,000
Variable expenses	96,000	240,000	336,000
Direct fixed expenses	24,000	30,000	54,000
Indirect fixed expenses			72,000

Assets (investment) used to generate operating income for the two segments are shown below.

	Los Angeles Segment	San Francisco Segment
Assets directly used by and identified with the segment	$180,000	$360,000

1. Prepare a segmented income statement in good format showing the contribution margin of each segment, the contribution to indirect expenses of each segment, and the total income of California, Inc.
2. Determine the return on investment for evaluating (1) the earning power of the entire company and (2) the performance of each segment.
3. Comment on the results of part (b).