The following information is available for some of a company's segments (all amounts are in millions):
$\begin{array}{|l|r|r|r|}
\hline& \text { North } & & \text { Latin } \
& \text { America }&\text { Africa }&\text{America}\
\hline\text { Segment sales }&\$ 6,264 & \$ 694 & \$ 2,089 \
\hline\text { Segment operating income }& 1,494 & 224 & 1,033 \
\hline\text { Segment average assets }& 4,869 & 541 & 1,443 \
\hline
\end{array}$
a.Determine the segment return on assets for each geographic segment
b.Comment on the results.How do the segments compare with respect to profitability?

Question

The following information is available for some of a company's segments (all amounts are in millions):
 $\begin{array}{|l|r|r|r|}
\hline& \text { North } &  & \text { Latin } \
& \text { America }&\text { Africa }&\text{America}\
\hline\text { Segment sales }&\$ 6,264 & \$ 694 & \$ 2,089 \
\hline\text { Segment operating income }& 1,494 & 224 & 1,033  \
\hline\text { Segment average assets }& 4,869 & 541 & 1,443  \
\hline
\end{array}$ 
a.Determine the segment return on assets for each geographic segment
b.Comment on the results.How do the segments compare with respect to profitability?

Quizplus · Accepted Answer

The Answer of The following information is available for some of a company's segments (all amounts are in millions):
 $\begin{array}{|l|r|r|r|}
\hline& \text { North } &  & \text { Latin } \
& \text { America }&\text { Africa }&\text{America}\
\hline\text { Segment sales }&\$ 6,264 & \$ 694 & \$ 2,089 \
\hline\text { Segment operating income }& 1,494 & 224 & 1,033  \
\hline\text { Segment average assets }& 4,869 & 541 & 1,443  \
\hline
\end{array}$ 
a.Determine the segment return on assets for each geographic segment
b.Comment on the results.How do the segments compare with respect to profitability?

The Following Information Is Available for Some of a Company's