The following data pertain to the operating revenues and expenses for California, Inc. for 20XX....
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The following data pertain to the operating revenues and expenses for California, Inc. for 20XX. Los Angeles San Francisco Total (LA) Segment $180,000 96,000 24,000 (SF) Segment Sales Variable expenses Direct fixed expenses Indirect fixed expenses $360,000 $540,000 240,000 336,000 30,000 54,000 72,000 Assets (investment) used to generate operating income for the two segments are shown below. Los Angeles Segment $180,000 San Francisco Segment Assets directly used by and identified with the segment $360,000 a. Prepare a segmented income statement in good format showing the contribution margin of each segment, the contribution to indirect expenses of each segment, and the total income of California, Inc b. Determine the return on investment for evaluating (1) the earning power of the entire company and (2) the performance of each segment c. Comment on the results of part (b)
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