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The following data are available for Segment A of ABC Company: Net income of the segment $ 50,000 Contribution to indirect expenses 40,000 Controllable income
The following data are available for Segment A of ABC Company:
Net income of the segment | $ 50,000 |
Contribution to indirect expenses | 40,000 |
Controllable income by manager | 48,000 |
Assets directly used by the segment | 360,000 |
Assets under the control of the segment manager | 240,000 |
Determine the return on investment for evaluating
(a) the income performance of the manager of Segment A
(b) the rate of income contribution of the segment.
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