Question
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,
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) | $69,600 | |
Home Box Office (pay television) | 61,800 | |
Warner Bros. (films, television, and videos) | 45,300 |
Assume that the variable costs as a percent of sales for each segment are as follows:
Turner | 37% | |
Home Box Office | 41% | |
Warner Bros. | 35% |
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.
Turner | Home Box Office | Warner Bros. | ||||
Revenues | $ | $ | $ | |||
Variable costs | $ | $ | $ | |||
Contribution margin | $ | $ | $ | |||
Contribution margin ratio (as a percent) | fill in the blank 10 | % | fill in the blank 11 | % | fill in the blank 12 | % |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started