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RESPONSIBILITY ACCOUNTING FOR COST- PROFIT AND INVESTMENT CENTERS The following data pertain to the operating revenues and expenses for California- Inc. for 20XX.

RESPONSIBILITY ACCOUNTING FOR COST, PROFIT AND INVESTMENT CENTERS

The following data pertain to the operating revenues and expenses for California, Inc. for 20XX.

Los Angeles       San Francisco          Total


(LA) Segment     (SF) Segment      __________


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 are shown below.

Los Angeles          San Francisco


Segment                 Segment

Assets directly used by and identified with the segment

$180,000                $360,000

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

SLP Assignment Expectations

Show computations in good format and explain answers as required. Excel is a great tool to make computations and present financial information in an easy to understand format. Write comments below the computations in Excel. Submit only the Excel file. Both content and the clarity of the presentation will be evaluated for grading purposes.