The operating revenues of the three largest business segments for Time Warner, Inc., for a recent...
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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. Turner (cable networks and digital media) Home Box Office (pay television) Time Warner, Inc. Segment Revenues (in millions) $84,600 55,000 Warner Bros. (films, television, and videos) 61,500 Assume that the variable costs as a percent of sales for each segment are as follows: Turner 49% Home Box Office 36% Warner Bros. 38% 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. Revenues Variable costs Contribution margin Contribution margin ratio (as a percent) Turner % Home Box Office Warner Bros. Frankenreiter Inc. Variable Costing Income Statement For the Year Ended December 31, 20Y1 Sales Variable cost of goods sold: Variable cost of goods manufactured Inventory, December 31 Total variable cost of goods sold Manufacturing margin Total variable selling and administrative expenses Contribution margin Fixed costs: $500,000 (75,000) $228,000 71,400 $884,000 425,000 $459,000 105,400 $353,600 Fixed manufacturing costs I Fixed selling and administrative expenses Total fixed costs 299,400 Income from operations $54,200 Determine the unit cost of goods manufactured, based on (a) the variable costing concept and (b) the absorption costing concept. Variable costing Absorption costing Analyzing Income under Absorption and Variable Costing Variable manufacturing costs are $115 per unit, and fixed manufacturing costs are $84,000. Sales are estimated to be 7,000 units. If an amount is zero, enter "0". Do not round interim calculations. Round final answer to nearest whole dollar. a. How much would absorption costing income from operations differ between a plan to produce 7,000 units and a plan to produce 8,400 units? b. How much would variable costing income from operations differ between the two production plans? Inventory Valuation under Absorption Costing and Variable Costing At the end of the first year of operations, 6,400 units remained in the finished goods inventory. The unit manufacturing costs during the year were as follows Direct materials $75 Direct labor 35 Fixed factory overhead 15 12 Variable factory overhead Determine the cost of the finished goods inventory reported on the balance sheet under (a) the absorption costing concept and (b) the variable costing concept. Absorption costing Variable costing 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. Turner (cable networks and digital media) Home Box Office (pay television) Time Warner, Inc. Segment Revenues (in millions) $84,600 55,000 Warner Bros. (films, television, and videos) 61,500 Assume that the variable costs as a percent of sales for each segment are as follows: Turner 49% Home Box Office 36% Warner Bros. 38% 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. Revenues Variable costs Contribution margin Contribution margin ratio (as a percent) Turner % Home Box Office Warner Bros. Frankenreiter Inc. Variable Costing Income Statement For the Year Ended December 31, 20Y1 Sales Variable cost of goods sold: Variable cost of goods manufactured Inventory, December 31 Total variable cost of goods sold Manufacturing margin Total variable selling and administrative expenses Contribution margin Fixed costs: $500,000 (75,000) $228,000 71,400 $884,000 425,000 $459,000 105,400 $353,600 Fixed manufacturing costs I Fixed selling and administrative expenses Total fixed costs 299,400 Income from operations $54,200 Determine the unit cost of goods manufactured, based on (a) the variable costing concept and (b) the absorption costing concept. Variable costing Absorption costing Analyzing Income under Absorption and Variable Costing Variable manufacturing costs are $115 per unit, and fixed manufacturing costs are $84,000. Sales are estimated to be 7,000 units. If an amount is zero, enter "0". Do not round interim calculations. Round final answer to nearest whole dollar. a. How much would absorption costing income from operations differ between a plan to produce 7,000 units and a plan to produce 8,400 units? b. How much would variable costing income from operations differ between the two production plans? Inventory Valuation under Absorption Costing and Variable Costing At the end of the first year of operations, 6,400 units remained in the finished goods inventory. The unit manufacturing costs during the year were as follows Direct materials $75 Direct labor 35 Fixed factory overhead 15 12 Variable factory overhead Determine the cost of the finished goods inventory reported on the balance sheet under (a) the absorption costing concept and (b) the variable costing concept. Absorption costing Variable costing
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ANSWER 1 Contribution Margin and Ratio for Time Warner Segments Segment Revenues Variable Costs Contribution Margin Contribution Margin Ratio Turner 8... View the full answer
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Financial and Managerial Accounting Using Excel for Success
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