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Segment Contribution Margin Analysis The operating revenues of the three largest business segments for Time Warner, Inc., for a recent year follow. Each segment
Segment Contribution Margin Analysis The operating revenues of the three largest business segments for Time Warner, Inc., for a recent year follow. Each segment includes a number of businesses, examples of which are indicated in parentheses. Time Warner, Inc. Segment Revenues (in millions) Turner (cable networks and digital media) Home Box Office (pay television) $87,500 20,500 Warner Bros. (films, television, and videos) 92,600 Assume that the variable costs as a percent of sales for each segment are as follows: Turner 23% Home Box Office: Warner Bros. 40% 26% a. Determine the contribution margin and contribution margin ratio for each segment from the information given. 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. Revenues Variable costs Contribution margin Contribution.marin ratio (as a percent) Check My Work 2 more Check My Work uses remaining a Turner Home Box Office Warner Bros. Previous Next
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