Segment Profitability Analysis

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.

Caterpillar, Inc. Machinery and Engines Marketing Segment Sales (in millions) Building Large Marine & Construction Cat Core Earth- Electric Power Petroleum Products Japan Components moving Power Excavation Systems Logistics Power 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 Large Marine & Core Earth Electric Power Petroleum Construction Cat Products Japan Components moving Power Excavation Systems Logistics Power Mining Turbines Variable cost of goods sold 45% 55% 49% 51% 54% 52% 53% 50% 50% 52% 48% as a percent of sales Dealer commissions as a percent of sales 8% 10% 9% 11% 8% 6% 596 10% 99% 7% 9% Variable promotion expenses (in millions) 300 310 120 150 600 200 600 75 270 480 400