Tag Archives: segmented income

Determine the return on investment for evaluating (1) the earning power of the entire company and (2) the performance of each segment.

Description The following data pertain to the operating revenues and expenses for California, Inc. for 20XX. Los Angeles (LA) Segment San Francisco (SF) Segment Total Sales $180,000 $360,000 $540,000 Variable expenses 96,000 240,000 336,000 Direct fixed expenses 24,000 30,000 54,000 Indirect fixed expenses 72,000 Assets (investment) used to generate operating income for the two segments […]