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) $90,600 Home Box Office (pay television) 74,100 Warner Bros. (films, television, and videos) 13,300 Assume that the variable costs as a percent of sales for each segment are as follows: Turner 27% Home Box Office 42% Warner Bros. 38% 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. Revenues $ $ $ Variable costs Contribution margin $ $ $ Contribution margin ratio (as a percent) % % %
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) $90,600 Home Box Office (pay television) 74,100 Warner Bros. (films, television, and videos) 13,300 Assume that the variable costs as a percent of sales for each segment are as follows: Turner 27% Home Box Office 42% Warner Bros. 38% 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. Revenues $ $ $ Variable costs Contribution margin $ $ $ Contribution margin ratio (as a percent) % % %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
| Time Warner, Inc. Segment Revenues (in millions) |
||
| Turner (cable networks and digital media) | $90,600 | |
| Home Box Office (pay television) | 74,100 | |
| Warner Bros. (films, television, and videos) | 13,300 |
Assume that the variable costs as a percent of sales for each segment are as follows:
| Turner | 27% | |
| Home Box Office | 42% | |
| Warner Bros. | 38% |
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. | ||||
| Revenues | $ | $ | $ | |||
| Variable costs | ||||||
| Contribution margin | $ | $ | $ | |||
| Contribution margin ratio (as a percent) | % | % | % |
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