4 ebook Festen Segment profitability Analyst The marketing wat sales for Caterpillar Inc. (CAT) for rent your follow Caterpillar Inc. Machinery and Engine Marketing Segment Sales (in millions) Building Large Marine & Construction Cat Core Earth Clectric Power Petroleum Products Japan Componente moving Power Excavation Systems Logistics Power Mining Turbines Sales 12,217 $1,225 $1,234 15.04552,047 $4,562 $2.00 12.132 $3,975 $3,323 In adon, sume the following formation Building Large Marine Construction Cat Core Earth Electric Power Petroleum Products Japan Components moving Power Excavation Systems Logistics Power Vannale cost of good old as a parcare of soles 554 59 son SOS Desier on a percent of IN 9 31 ON 104 SN 100 9. Variable promotion expenses in milions) 310 120 150 600 200 600 75 270 Mining Turbines 52 404 79 9N 450 400 # use the sales information and the additional assumed information to prepare a contribution margin by Ant Pet Hound anwwers to two decimal places, except for contribution margin ratio, which should be Founded to one decimal place Enter all amount as portes Caterpillar the Contribution Margin by Segment assumed) in millions pratie figures) Building Construction Cal Japan Core Electric Earthmoving Turbines Large Power Excavation Logistics Marine and Petroleum Products Components Power Systems Mining Power ood Varate cost of goods sold Manufacturing morgin Dear camic Variable promotion ten Variable saling ex Odd Contribution margin Contbution margin Patio b. Prepare a table vhowing the manufacturing margin, celle commission, and variable promotion expenses as a percent of sales for each segment. Round percents to one decimal place, if required. Er wil amounta as positive numbers Caterpillar Inc Contribution Margin by Segment (assumed) in millions, except ratio figures) Building Construction Catapan Electric Large Power Excavation Logistics Marine and Petroleum Products Earthmoving Components Mining Power Systems Power Core Turbines Manufacturing margin Dealer commission Variable promotion een Contribution margin ratio ind i call of the following are contributing to the Catapan is the poorest performing segment except a. The manufacturing margin as a percentage of sale is the lowest b. The dealer commissione a percentage of the highest The variable promotion expenses as a percentage of sales are the highest d. The variable cost of goods sold as a percentage of the highest None of the choices is correct The constante Segment profitability Analysis The marketing segment sales for Caterpillar Inc. (CAT) for a recent year follow 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 52,237 $1,225 $1,234 $5,045 52,847 $4,562 $2,885 $659 $2,132 $3,975 53,321 In addition, assume the following information: Building Large Marine & Construction Cat Core Earth Electric Power Petroleum Products Japan Components moving Power Excavation Systems Logistics Power Mining Turbines Variable cost of goods sold as a 45% 55% 49% 51% 54% 5296 53% 5096 50% percent of sales 52% 4896 Dealer commissions as a percent 11% 8% 10% 69 5% of sales 109 99% 2% 99 84 Variable promotion expenses in millions) 310 120 150 600 200 600 300 75 270 480 400 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 Caterpillar Inc. Contribution Margin by Segment (assumed) (in millions, except ratio figures) Marine Building Core Large Cat Japan Electric Logistics Construction and Components Earthmoving Excavation Power Mining Power Petroleum Products Systems Power Sales Variable cost of goods sold Manufacturing - margin Dealer commissions Variable promotion expenses Variable Selling expenses Contribution margin Contribution margin ratio oddo podod podod od do oddo 10000 i podod 980 90 90 00 96 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. Contribution Margin by Segment (assumed) (in millions, except ratio figures) Marine Building Core Cat Japan Electric Large Construction and Logistics Components Earthmoving Excavation Power Power Petroleum Products Mining Systems Power Manufacturing % 96 % % % % % % 96 90 margin Dealer 90 96 96 96 96 commissions Variable promotion % % 9 % % % % % expenses Contribution % margin ratio c. All of the following are contributing rensons that Cat Japan is the poorest performing segment except: a. The manufacturing margin as a percentage of sales is the lowest b. The dealer commissions as a percentage of sales are the highest G. The variable promotion expenses as a percentage of sales are the highest d. The variable cost of goods sold as a percentage of sales is the highest e. None of these choices is correct The correct answer ist