Segment Contribution Margin Analysis The operating revenues of the three largest business segments includes a number of businesses, examples of which are indicat Time Warner, Inc. Segment Revenues (in millions)
Segment Contribution Margin Analysis The operating revenues of the three largest business segments includes a number of businesses, examples of which are indicat Time Warner, Inc. Segment Revenues (in millions)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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)
$54,900
Home Box Office (pay television)
30,400
Warner Bros. (films, television, and videos)
55,300
Assume that the variable costs as a percent of sales for each segment are as follows:
Turner
18%
Home Box Office
16%
Warner Bros.
45%
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 5,688.7 to 5,689). Round contribution margin
ratio to whole percents for each segment from the information given.
Turner
Home Box Office
Warner Bros.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F772993d6-28ad-4b06-91b7-fbd8ac148268%2Fcfb76ce6-472e-486f-84c4-a855cf329982%2Fdqnaz7j_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The Norton Introduction to L
CengageNOWv2| Online teac x
Navy Federal GO Prepaid - S x
hASsigumentitakcAss gamentMalh.doinvokcr-3tak.CASSignment5oss onLocator-8irprogross-lalse
elcome, Quente.. 3 Library Genesis Macmillan Launch.. O (7) YouTube
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eBook
Print Item
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)
$54,900
Home Box Office (pay television)
30,400
Warner Bros. (films, television, and videos)
55,300
Assume that the variable costs as a percent of sales for each segment are as follows:
Turner
18%
Home Box Office
16%
Warner Bros.
45%
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 5,688.7 to 5,689). Round contribution margin
ratio to whole percents for each segment from the information given.
Turner
Home Box Office
Warner Bros.
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