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Sogmert Contribution Margin Rnalyiri Than operating rewenues of the the farpest beriness segmenty for Time Warner, Inc, for a recent year follow. Each seyretnt indudes
Sogmert Contribution Margin Rnalyiri Than operating rewenues of the the farpest beriness segmenty for Time Warner, Inc, for a recent year follow. Each seyretnt indudes a tumber of businesse, extmplos of wbich are levdicated in parentheses. Ahaume that tha variabie cests as a betcent of ales for each begment are at folloms: frem the imforrantines glven. Acsume that the wariable costs as a percent of sales for each .stgment are as followst a. Determine the coritribution marein and contribubion margin ratio for tach segment from the information given. When reguirne. round fo the Mearest whole millienth (for example. round 5,680.7 to 5 , 6tr9). Roand contributian marain ratio to whole percents for each segnsent from the information ghven. b. Does vour answer to (a) megn that the othet iejments are more prafitarle buinestes? The bigher covtribusion margin ratio of a segnerk phosid hot be inferseled as leing ifie bushess is not sulfident to exseed the breakever. point, then the segmeres with te sheuld be cersidered in delermining the overall profitabilit of the pegments. The changes in volume
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