The Following Segmental Information Is Provided for Powerage Ltd Which Segment Is Most Profitable in Relation to Capital Employed

question 20

Multiple Choice

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



Which segment is most profitable in relation to capital employed?

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

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Definitions:

Peanut Growers

Individuals or entities engaged in the cultivation and harvest of peanuts as an agricultural practice.

Marginal Revenue

It refers to the additional income earned by selling one more unit of a good or service.

Marginal Cost

The increase in costs resulting from the manufacturing of one extra good or service.

Dominant Price Leader

A firm that has the largest market share within an industry and whose pricing decisions are often followed by other firms in the market.