Responsibility Accounting for Cost, Profit and Investment Centers

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Subject:

Accounting

Topic:

Responsibility Accounting for Cost, Profit and Investment Centers

The following data pertain to the operating revenues and expenses for California, Inc. for 20yy. on the attach document: Company Info CA Inc. Complete A, B & C by showing computations in good format and explain answers as required. Present financial information in an easy to understand format. Write comments below the computations in Excel. 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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