1. Purple Cow Company has three business segments: Jersey, Angus, and Brahma.

Each segment had the following assets and generated the following margins last year:

Jersey Angus Brahma

Segment assets $100,000 $150,000 $300,000

Segment margin $ 45,000 $ 60,000 $102,000

Compute ROI for each segment

If the interest rate used to determine the segment financing charge is 20%, what is the residual income for each segment?

Which segment performed the best; the worst?