4. The operating revenues of the three largest business segments for Time Warner, Inc., for arecent year follow. Each segment includes a number of businesses, examples of which areindicated in parentheses.Time Warner Inc.Segment Revenues (in millions)Turner (cable networks and digital media)Home Box Office (pay television)$10,5965,615Warner Bros. (films, television, and videos)12,993Assume that the variable costs as a percent of sales for each segment are as follows:SegmentPercentageTurner37%Home Box Office33%Warner Bros.30%а.Determine the contribution margin (round to whole millions) and contribution marginratio (round to whole percentages) for each segment from the information given.b. Does the segment with the highest contribution margin in (a) mean that it is the mostprofitable segment with the highest operating income?

Contribution margin is defined as the one which states the incremental money generated for every…

4. The operating revenues of the three largest business segments for Time Warner, Inc., fo recent year follow. Each segment includes a number of businesses, examples of which a indicated in parentheses. Time Warner Inc. Segment Revenues (in millions) Turner (cable networks and digital media) $10.596

4. The operating revenues of the three largest business segments for Time Warner, Inc., fo recent year follow. Each segment includes a number of businesses, examples of which a indicated in parentheses. Time Warner Inc. Segment Revenues (in millions) Turner (cable networks and digital media) $10.596

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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