Netflix, Inc has three segments Streaming, DVD Rentals, and Content Production The following information is provided for 2023 Streaming Sales $7,000,000, Variable Costs $3,500,000, Fixed Costs $1,750,000 DVD Rentals Sales $6,000,000, Variable Costs $3,000,000, Fixed Costs $1,500,000 Content Product...

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Netflix, Inc. has three segments: Streaming, DVD Rentals, and Content Production. The following information is provided for

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Netflix, Inc. has three segments: Streaming, DVD Rentals, and Content Production. The following information is provided for 2023:

Streaming: Sales $7,000,000, Variable Costs $3,500,000, Fixed Costs $1,750,000
DVD Rentals: Sales $6,000,000, Variable Costs $3,000,000, Fixed Costs $1,500,000
Content Production: Sales $5,000,000, Variable Costs $2,500,000, Fixed Costs $1,250,000

Required:

Prepare a segmented income statement.
Calculate the contribution margin for each segment.
Analyze the profitability of each segment and suggest improvements.
Discuss the importance of segment reporting in financial analysis and decision-making.