Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. segment analysis for a service company charles sch

Segment analysis for a service company Charles Schwab Corporation (SCHW) is one of the more...

90.2K

Verified Solution

Question

Accounting

Segment analysis for a service company

Charles Schwab Corporation (SCHW) is one of the more innovative brokerage and financial service companies in the United States. The company recently provided information about its major business segments as follows (in millions):

Investor Services Advisor Services
Revenues $5,411 $2,067
Operating income 2,031 962
Depreciation 180 54

Investor Services (in millions) Advisor Services (in millions)
Estimated contribution margin 2211 1016

If Schwab decided to sell its Advisor Services accounts to another company, estimate how much operating income would decline under the following assumptions.

Assume the fixed costs that serve Advisor investors would not be sold but would be used by the other sector: ____ million Assume the fixed assets were sold: ___ million

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Statistics
1.2K views

A large supermarket carries four qualities of ground beef. Customers are believed to purchase these four...

Statistics
1.2K views

John Calipari, head basketball coach for the 2012 national champion University of Kentucky Wildcats, is the...

Chemistry
1.2K views

The pH gradient established by the electron transport chain in photosynthesis: a.)  Exists between the matrix and...

Chemistry
1.2K views

A compound of chlorine and fluorine, ClFn, reacts at about 75?C with uranium metal to produce...

Physics
1.2K views

What are the Efficiency, temperature, rate power, and concentration for slat-Gradient solar ponds?

Electrical Engineering
1.2K views

design, simulate, and implement a 12W Multi Voltage AC/DC Adapter Switching Power Supply, Suitable for 3...

Accounting
1.2K views

Sleepeze Company produces mattresses for 20 retail outlets. Of the 20 retail outlets, 19 are small,...

Physics
1.2K views

53 A thin plano convex lens of focal length fis split into two halves one...

Accounting
1.2K views

Given below are comparative statements of financial position...

Accounting
1.2K views

What is the highest tax rate? 15% 37% 39.5% 22% A "C" corp...

Accounting
1.2K views

Windsor Furniture Company started construction of a combination office and warehouse building for its own...

Accounting
1.2K views

Baron Company incurs the following annual costs in producing 25,000 ignition switches for motor scooters....