Question

A company that reports segment information had average total assets of $1,548,450 and total net income of $629,700. Segment A had average total assets of $940,800 and segment operating income of $317,800. Segment B had average assets of $607,650 and segment operating income of $311,900. The segment return on assets for Segment B is:

Answer 1

Answer:

the segment return on assets for segment B is 51.33%

Explanation:

The computation of the segment return on assets for segment B is shown below:

For segment B

= Segment operating income ÷ average assets

= $311,900 ÷ $607,650

= 51.33%

Hence, the segment return on assets for segment B is 51.33%

We simply applied the above formula so that the correct value could come

And, the same is to be considered