Two product segments showed the following data for the most recent year: Product
ID: 2404347 • Letter: T
Question
Two product segments showed the following data for the most recent year:
Product A Product B
Segment income $ 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
Calculate return on investment for each segment.
Product A 33.3% ; Product B 23.1%
Product A 23.1%; Product B 33.3%
Product A 75% ; Product B 32.5%
Product A 38.5% ; Product B 20%
Product A 33.3% ; Product B 23.1%
Product A 23.1%; Product B 33.3%
Product A 75% ; Product B 32.5%
Product A 38.5% ; Product B 20%
Explanation / Answer
Return on investment = Net income / investment*100
Product A
Product B
Segment Income
840000
504000
Investment
2520000
2184000
Return on investment
=840000/2520000*100
=33.3%
= 504000/2184000*100
=23.1%
Answer is Option - Product A 33.3%; Product B 23.1%
Product A
Product B
Segment Income
840000
504000
Investment
2520000
2184000
Return on investment
=840000/2520000*100
=33.3%
= 504000/2184000*100
=23.1%
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.