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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 manager 360,000
Assets under the control of the segment manager 240,000
Required Response: Determine the return on investment for evaluating (a) the income performance of the manager of Segment A and (b) the rate of income contribution of the segment.
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