egment Contribution Margin Analysis he operating revenues of the three largest business segments for Time Warner, Inc., for a recent year follow. Each seoment includes a Iumber of businesses, examples of which are indicated in parentheses. Assume that the variable costs as a percent of sales for each segment are as follows: a. Determine the contribution margin and contribution margin ratio for each segment from the information diven. 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. nearest whole millionth (for example, round 5,688.7 to 5,689 ). Round contribution margin ratio to whole percents for each egment from the information given. b. Does your answer to (a) mean that the other segments are more profitable businesses? The higher contribution margin ratio of a segment should not be interpreted as being the profitable segment. If the volume of business is not sufficient to exceed the break-even point, then the segments would be . In the final analysis, the fixed costs also should be considered in determining the overall profitability of the segments. The sensitive the profit will be to changes in volume