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The Following Segmental Information Is Provided for Powerage Ltd Which Segment Would You Suggest Needs to Become More Profitable

Question 2

Multiple Choice

The following segmental information is provided for Powerage Ltd.
 Audio America  Audio Europe  Visual America  Visual Europe £m£m£m£m Sales 60036070120 Operating profit 18201716 Net operating assets 2403003040\begin{array}{lcccc}&\text { Audio America } & \text { Audio Europe } & \text { Visual America } & \text { Visual Europe } \\&£ \mathrm{m}&£ \mathrm{m}&£ \mathrm{m}&£ \mathrm{m}\\\\\text { Sales } & 600 & 360 & 70 & 120 \\\text { Operating profit } & 18 & 20 & 17 & 16 \\\text { Net operating assets } & 240 & 300 & 30 & 40\end{array}


Which segment would you suggest needs to become more profitable?


A) Audio America
B) Audio Europe
C) Visual America
D) Visual Europe

Correct Answer:

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