Question: help with this question please Segment Contribution Margin Analysis The operating revenues of the three largest business segments for Time Warner, Inc., for a recent
help with this question please

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. Time Warner, Inc. Segment Revenues (in millions) Turner (cable networks and digital media) $29,800 Home Box Ofce (pay television) 56,600 Warner Bros. (films, television, and videos) 94,300 Assume that the variable costs as a percent of sales for each segment are as follows: Turner 45% Home Box Ofce 50% Warner Bros. 52% a. Determine the contribution margin and contribution margin ratio for each segment from the information given. When required, round to the nearest whole millionth (for example, round 5,688.? to 5,689). Round contribution margin ratio to whole percents for each segment from the information given. Turner Home Box Ofce Warner Bros. Revenues $ Va riable costs :l l:l :l :l [:l :l Contribution margin $:] $:] $:] :l l:l :l Contribution margin ratio (as a percent) b. Does your answer to (a) mean that the other segments are more profitable businesses? {mg/W ' | The higher contribution margin ratio of a segment should not be interpreted as being the \\ protable segment. If the volume of business is not sufficient to exceed the break-even point, then the segments would be V . In the nal analysis, the fixed costs also should be considered in determining the overall protability of the segmen . The E shows how sensitive the prot will be to changes in volume. contribution margin ratio xed costs gq'l'vdp Ems\": MMX'cbr
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