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:
List your educational degrees
Explanation:
Answer:
D. The company's ability to improve and create value
Explanation:
The financial perspective is concerned the businesses are still very much in increasing the revenue and focus how to curtail the cost so as to be increasing the profit and creating value for the concern. So here balanced score card is used to assess businesses meeting their financial goal to what extent.
Answer:
Wilma's Widgets will report $3,880,749.00 as earnings before interest and taxes (i.e., operating profit) in 2010
Explanation:
Earnings before interest and tax= net sales-cost of goods sold-operating expenses-depreciation
net sales is $20,882,696
cost of goods sold is $13,765,751
operating expenses are $2,014,441
depreciation is $1,221,755
earnings before interest and tax=$20,882,696- $13,765,751- $2,014,441-$1,221,755=$3,880,749.00
