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Managerial Accounting problem attached. All steps must be completed with work show. Thank you. Scranton Company has three operating segments. The managers of each segment
Managerial Accounting problem attached. All steps must be completed with work show. Thank you.
Scranton Company has three operating segments. The managers of each segment have decision-making authority regarding pricing, cost control and asset investment. The following information is available for the three segments for the third quarter of 2014: Alpha Beta Delta Revenues $790,000 $1,245,000 $990,000 Operating Expenses $560,000 $960,000 $700,000 $1,600,000 $2,000,000 $2,080,000 120,000 150,000 130,000 12.0% 12.0% 12.0% Invested Assets Number of Transactions Desired Minimum ROI The company has a centralized accounting system. For financial reporting purposes, accounting department costs and common corporate costs are allocated to the segments as follows: Accounting Department (number of transactions) Corporate Headquarters' Costs (per revenue dollar) $60,000 $810,000 REQUIRED: Part 1: Prepare a report showing the operating incomes of the three segments for performance evaluate purposes. Part 2: Identify the most successful segment according to each of the following measurements: (Show supporting calculations.) Segment profit margin Segment return on investment Segment residual income Part 3: Which of the measurements in Part 2 would you recommend for comparing the performance of the segments? WhyStep by Step Solution
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