Answer:
Time Warner, Inc.
a) Contribution Margin and Contribution Margin Ratio for each segment:
Turner Home Box Office Warner Bros.
Revenues $75,100 $43,200 $44,500
Variable costs 20,277 6,912 11,125 Contribution margin $54,823 $36,288 $33,375
Contribution margin ratio
(as a percent of Revenue) 73% 84% 75%
b) The answer in (a) does not mean that the two other segments are more profitable than Turner. The Contribution Margin Ratio is not enough to decide the profitability of each segment. It only shows the percentage of revenue that is left after deducting the variable costs. To determine profitability, fixed costs will be deducted from the contribution margin. Fixed costs refer to the periodic costs associated with running the different segments.
Explanation:
Segment Contribution Margin Analysis helps management to review the contributions made by each segment to the entity. It shows the difference between segmental revenues and segmental variable costs.
Answer:
4600
Explanation:
Rent expense is 6000 but he still owed 1400 of that. So he paid 4600 (6000-1400)
Answer:
d. Competence face
Explanation:
Based on the scenario being described within the question it can be said that the face need that Josh is satisfying through this is known as Competence face. This describes an individual's desire to appear intelligent, accomplished, and cable to those around him/her. Which is why Josh responds to criticism with a fair and firm tone in order to keep up appearances of being in control.
Answer:
Explanation:
Dividends through year 1 to 5:
D1 = 2.15*(1+0.30)^1 = 2.80
D2 = 2.15*(1+0.30)^2 = 3.63
D3 = 2.15*(1+0.30)^2 * (1+0.18)^1 = 4.29
D4 = 2.15*(1+0.30)^2 * (1+0.18)^2 = 8.58
D5 = 2.15*(1+0.30)^2 * (1+0.18)^3 = 12.86
PV (D1) = 2.80
PV (D2) = 3.63 *PVIF = 3.63 * 0.87719 = 3.19
PV (D3) = 4.29 * 0.76947 = 3.30
PV (D4) = 8.58 * 0.67497 = 5.79
PV (D5) = 12.86 * 0.59208 = 7.62
Total of all PV's = 22.69
