Provided below are the marketing segment sales for Caterpillar, Inc., for a recent year.

a. Use the sales information and the additional assumed information to prepare a contribution margin by segment report. Round answers to two decimal places, except for contribution margin ratio, which should be rounded to one decimal place. Enter all amounts as positive numbers.

b. Prepare a table showing the manufacturing margin, dealer commissions, and variable promotion expenses as a percent of sales for each segment. Round percents to one decimal place, if required. Enter all amounts as positive numbers.

 

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Caterpillar, Inc. Machinery and Engines Marketing Segment Sales (In millions) Building Construction Cat Products Japan Components moving Power Excavation Systems Logistics Large Power Marine & Earth- Electric Petroleum Power Core Mining Turbines Sales $2,217 $1,225 $1,234 $5,045 $2,847 $4,562 $2,885 $659 $2,132 $3,975 $3,321 In addition, assume the following information: Building Construction Cat Large Power Marine & Core Earth- Electric Petroleum Products Japan Components moving Power Excavation Systems Logistics Power Mining Turbines Variable cost of goods sold as a percent of sales... Dealer commissions as a 45% 55% 49% 51% 54% 52% 53% 50% 50% 52% 48% 8% percent of sales . Variable promotion expenses (in millions) 9% 11% 8% 10% 6% 5% 10% 9% 7% 9% 310 120 150 600 200 600 300 75 270 480 400 ..... Caterpillar, Inc. Machinery and Engines Marketing Segment Sales (In millions) Building Construction Cat Products Japan Components moving Power Excavation Systems Logistics Large Power Marine & Earth- Electric Petroleum Power Core Mining Turbines Sales $2,217 $1,225 $1,234 $5,045 $2,847 $4,562 $2,885 $659 $2,132 $3,975 $3,321 In addition, assume the following information: Building Construction Cat Large Power Marine & Core Earth- Electric Petroleum Products Japan Components moving Power Excavation Systems Logistics Power Mining Turbines Variable cost of goods sold as a percent of sales... Dealer commissions as a 45% 55% 49% 51% 54% 52% 53% 50% 50% 52% 48% 8% percent of sales . Variable promotion expenses (in millions) 9% 11% 8% 10% 6% 5% 10% 9% 7% 9% 310 120 150 600 200 600 300 75 270 480 400 .....

Answer rating: 100% (QA)

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