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Segment Contribution Margin Analysis Time Warner, Inc. Segment Revenues (in millions) Turner...

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Accounting

Segment Contribution Margin Analysis
Time Warner, Inc.
Segment Revenues
(in millions)
Turner (cable networks and digital media)
Home Box Office (pay television)
Wamer Bros. (films, television, and videos)
$45,900
27,300
86,400
Assume that the variable costs as a percent of sales for each segment are as follows:
Turner
28%
Home Box Office
49%
Wamer Bros.
34% margin ratio to whole percents for each segment from the information given.
Revenues
Variable costs
Contribution margin
Contribution margin ratio (as a percent)
b. Does your answer to (a) mean that the other segments are more profitable businesses? volume,
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