Segment Analysis Winston Sylvester Corporation is a brokerage and financial serv

Question

Segment Analysis

Winston Sylvester Corporation is a brokerage and financial service company. The company recently provided information about its major business segments as follows (in millions):

a. The

segment serves the retail customer, you and me. These include brokerage, Internet, and mutual fund services. The

segment includes the same services provided for financial institutions, such as banks, mutual fund managers, insurance companies, and pension plan administrators.

b. Estimate the contribution margin for each segment, assuming depreciation represents the majority of fixed costs.

Explanation / Answer

Investor Institutional Details Services Services a Revenues                             2,560 $1,493 b Income from operations                             1,028 172 c Depreciation                                103 58 Contribution from operations=b+c=                             1,131                                         230 Investor Services Institutional Services (in millions) (in millions) Estimated contribution margin $ $ Contribution from operations=b+c=                             1,131                                         230

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects