Question: Can someone help me solve! Segment Contribution Margin Analysis The operating revenues of the three largest business segments for Time Warner, Inc,, for a recent

Segment Contribution Margin Analysis The operating revenues of the three largest business segments for Time Warner, Inc,, for a recent year follow, Each segment includes a number of businesses, examples of which are indicated in parentheses. Assume that the variable costs as a percent of sales for each segment are as follows: a. Determine the contribution margin and contribution margin ratio for each segment from the information given. Round contribution margin ratio to Whole percents for each segment from the information given. Enter all amounts as positive numbers. Assume that the variable costs as a percent of sales for each segment are as follows: a. Determine the contribution margin and contribution margin ratio for each segment from the information given. Round contribution margin rati whole percents for each segment from the information given. Enter all amounts as positive numbers. b. Does your answer to (b) mean that the other segments are more profitable businesses? The higher contribution margin ratio of a segment should not be interpreted as being the profitable segment. If the volume business is not sufficient to exceed the break-even point, then the segments would be . In the final analysis, the fixed costs should be considered in determining the overall profitability of the segments. The shows how sensitive the profit will be to changes in volume
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
