Exercise E Two segments (Mountain Bike and Road Bike) showed the following data for themost recent year:Mountain bikeRoad bikeContribution to indirect expenses$ 840,000$ 504,000Assets directly used by and identified with the segment2,520,0002,184,000Sales3,360,0006,720,000rs/hannah/Downloads/Managerial-Accounting-1506381825_regexified.htmlManagerial Accountinga. Calculate return on investment for each segment in the most direct manner.b. Calculate return on investment using the margin and turnover components.

In this question, we have to calculate the return on investment

Exercise E Two segments (Mountain Bike and Road Bike) showed the following data nost recent year: Mountain bike F Contribution to indirect expenses $ 840,000 Assets directly used by and identified with the segment 2,520,000 Sales 3,360,000

Exercise E Two segments (Mountain Bike and Road Bike) showed the following data nost recent year: Mountain bike F Contribution to indirect expenses $ 840,000 Assets directly used by and identified with the segment 2,520,000 Sales 3,360,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

100%

Exercise E Two segments (Mountain Bike and Road Bike) showed the following data for the
most recent year:
Mountain bike
Road bike
Contribution to indirect expenses
$ 840,000
$ 504,000
Assets directly used by and identified with the segment
2,520,000
2,184,000
Sales
3,360,000
6,720,000
rs/hannah/Downloads/Managerial-Accounting-1506381825_regexified.html
Managerial Accounting
a. Calculate return on investment for each segment in the most direct manner.
b. Calculate return on investment using the margin and turnover components.

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