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Segment analysis for a service company Winston Sylvester Corporation is one of the more innovative brokerage and financial service companies in United States. The company
Segment analysis for a service company Winston Sylvester Corporation is one of the more innovative brokerage and financial service companies in United States. The company recently provided information about its major business segments as follows (in millions): Investor Advisor Services Services Revenues $2,490 $1,333 Income from operations 1,026 191 Depreciation 92 60 c. Estimate the contribution margin for each segment, assuming depreciation represents the majority of fixed costs. Investor Services Advisor Services (in millions) (in millions) Estimated contribution margin $ d. If Schwab decided to sell its "Advisor Services accounts to another company, estimate how much operating income would decline under the following assumptions. Assume the fixed costs that serve Advisor investors would not be sold but would be used by the other sector: $ million Assume the fixed assets were "sold": $ million
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