Charles Schwab Corporation is one of the more innovative brokerage and financial service companies in the United States. The company recently provided information about its major business segments as follows (in millions): Investor Advisor Services Services Revenues $4,771 $4,597 Income from operations 1,681 1,660 Depreciation 171 154 segment includes the same services provided for financial a. The Investor Services segment serves the retail customer, you and me. These include brokerage, Internet, and mutual fund services. The Investor Services x institutions, such as banks, mutual fund managers, insurance companies, and pension plan administrators b. Indicate whether the following costs are a "Variable Cost or a "Fixed Cost" in the "Investor Services" 1. Commissions to brokers Variable Cost 2. Fees paid to exchanges for executing trades Variable Cost 3. Depreciation on brokerage offices Fixed Cost 4. Transaction fees incurred by Schwab mutual funds to purchase and sell shares Variable Cost 5. Property taxes on brokerage offices Fixed Cost 6. Advertising Fixed Cost X 7. Depreciation on brokerage office equipment, such as computers and computer networks Fixed Cost c. Estimate the contribution margin for each segment, assuming that depreciation represents the majority of fixed costs Advisor Services Investor Services (in millions) (in millions) 577 X Estimated contribution margin 980 d. If Schwab decided to sell its Advisor Services business to another company, estimate how much operating income would decline under the following assumptions. Assume the fixed costs that serve the Advisor Services business would not be sold but would be used by the other sector: $ 1,370 X million Assume the fixed assets were "sold": s 793 X million