Segment Profitability Analysis Provided below are the marketing segment sales for Caterpillar, Inc., for a recent year. In addition, assume the following information: Hide a. Use the sales information and the additional assumed information to prepare a contribution margin by segment report. Round answers to two decimal places, except for contribution margin ratio, which should be rounded to one decimal place. Enter all amounts as positive numbers. Caterpillar, Inc. Contribution Margin by Segment (assumed) (in millions, except ratio figures) Building Construction Products Cat Japan Core Components Earthmoving Electric Power Excavation Large Power Systems Logistics Marine and Petroleum Power Mining Turbines Sales $ $ $ $ $ $ $ $ $ $ $ Variable cost of goods sold Manufacturing margin $ $ $ $ $ $ $ $ $ $ $ Dealer commissions $ $ $ $ $ $ $ $ $ $ Variable promotion expense Variable selling expenses $ $ $ $ $ $ $ $ $ $ $ Contribution margin $ $ $ $ $ $ $ $ $ $ $ Contribution margin ratio % % % % % % % % % % % Hide b. Prepare a table showing the manufacturing margin, dealer commissions, and variable promotion expenses as a percent of sales for each segment. Round percents to one decimal place, if required. Enter all amounts as positive numbers. Caterpillar, Inc. Manufacturing Margin by Segment (assumed) (in millions, except ratio figures) Building Construction Products Cat Japan Core Components Earthmoving Electric Power Excavation Large Power Systems Logistics Marine and Petroleum Mining Turbines Manufacturing margin % % % % % % % % % % % Commission % % % % % % % % % % % Variable promotion % % % % % % % % % % % Contribution margin ratio % % % % % % % % % % % c. All of the following are contributing reasons that Cat Japan is the poorest performing segment except: The manufacturing margin as a percentage of sales is the lowest. The dealer commissions as a percentage of sales are the highest. The variable promotion expenses as a percentage of sales are the highest. The variable cost of goods sold as a percentage of sales is the highest. None of these choices is correct. The correct answer is