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Shalnov [3]
3 years ago
11

Charles Schwab Corporation is one of the more innovative brokerage and financial service companies in the United States. The com

pany recently provided information about its major business segments as follows (in millions): Investor Advisor Services ServicesRevenues $4,771 $4,597 Income from operations 1,681 1,660 Depreciation 171 154Estimate the contribution margin for each segment, assuming that depreciation represents the majority of fixed costs. Investor Services Advisor Services (in millions) (in millions) Estimated contribution margin $1,681 $1,660 If Schwab decided to sell its Advisor Services business to another company, estimate how much operating income would decline under the following assumptions. Assume the fixed costs that serve the Advisor Services business would not be sold but would be used by the other sector: $1,660 million.Assume the fixed assets were "sold": $ 1,506 million
Business
1 answer:
anyanavicka [17]3 years ago
7 0

Answer and Explanation:

a. The estimation of the contribution margin for each segment is shown below:

                                                     (in millions)

<u>Particulars            Investor Advisor             Services Services   </u>

Income from

operations              $1,681                                  $1,660

Add:

Depreciation           $171                                     $154

Contribution

Margin                    $1,852                                  $1,814

2. Now the estimation of decline in operating income is

                                                   (in millions)

<u>Particulars         Combined services          Institutional Services   </u>

Revenues          $9,368                                $4,771

Less:

Variable cost    $5,702                                 $2,919

                    ($2,919 + $2,783)

Contribution

margin               $3,666                                 $1,852

Less:

Fixed cost         -$325                                    -$171

Net income        $3,341                                  $1,681

So according to the above calculations, the net operating income is declined by

= $3,341 - $1,681

= $1,660 million

The variable cost is come from

= Service revenues - income from operations - depreciation expense

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Explanation:

From the information given in the question, the journal entry at the time of sales will be represented as:

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Now, when the credit receipt is received as illustrated in the question, the journal entry will be:

Debit Cash $1,750

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7 0
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Answer:

The correct answer is letter "C": both frictional unemployment and the natural rate of unemployment.

Explanation:

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3 years ago
Which of the following is NOT one of the mentioned ways high school differs from higher learning?
Digiron [165]
Hey there!

<span>Which of the following is NOT one of the mentioned ways high school differs from higher learning?

Answer: </span>
<span>Amount of support and guidance

Hope this helps
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3 0
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The percent change in multifactor productivity if Fok can reduce the energy bill by ​$1,000 per day without cutting production o
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Answer:

The answer is "2.45%".

Explanation:

The answer of option c:

Reduce power by 950 dollars:

In this question it will need to once again take the latest energy cost for analytical hierarchical productivity.  

→ Total Input  = 400 \times  12+21000 \times 1 +(5000-950)+10000

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Consumer rates  = \frac{1,000}{39,850}

                            =0.0250

Initial efficiency multi-factor= 0.0245

\to \text{percentage  changes} = \frac{\text{New Multi Factor Productivity - Previous Multi-Factor Productivity}}{\text{Originbal Multi-Factor Productivity}}  

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