Segment Profitability AnalysisThe marketing segment sales for Caterpillar Inc. (CAT) for a recent year follow: Caterpillar Inc.Machinery and Engines Marketing Segment Sales(in millions) BuildingConstructionProductsCatJapanCoreComponentsEarthmovingElectricPowerExcavationLargePowerSystemsLogisticsMarine &PetroleumPowerMiningTurbinesSales$2,217$1,225$1,234$5,045$2,847$4,562$2,885$659$2,132$3,975$3,321In addition, assume the following information: BuildingConstructionProductsCatJapanCoreComponentsEarthmovingElectricPowerExcavationLargePowerSystemsLogisticsMarine &PetroleumPowerMiningTurbinesVariable cost of goods sold as a percent of sales45%55%49%51%54%52%53%50%50%52%48%Dealer commissions as a percent of sales9%11%8%8%10%6%5%10%9%7%9%Variable promotion expenses (in millions)31012015060020060030075270480400a. Use the sales information and the additional assumed information to prepare a contribution margin by segment report. Round answers to two decimal places, except for contribution margin ratio, which should be rounded to one decimal place. Enter all amounts as positive numbers.Caterpillar Inc.Contribution Margin by Segment (assumed)(in millions, except ratio figures) Building Construction ProductsCat JapanCore ComponentsEarthmovingElectric PowerExcavationLarge Power SystemsLogisticsMarine and Petroleum PowerMiningTurbinesSales Variable cost of goods sold Manufacturing margin Dealer commissions Variable promotion expenses Variable selling expenses Contribution margin Contribution margin ratio b. Prepare a table showing the manufacturing margin, dealer commissions, and variable promotion expenses as a percent of sales for each segment. Round percents to one decimal place, if required. Enter all amounts as positive numbers.Caterpillar Inc.Contribution Margin by Segment (assumed)(in millions, except ratio figures) Building Construction ProductsCat JapanCore ComponentsEarthmovingElectric PowerExcavationLarge Power SystemsLogisticsMarine and Petroleum PowerMiningTurbinesManufacturing margin%%%%%%%%%%%Dealer commissions%%%%%%%%%%%Variable promotion expenses%%%%%%%%%%%Contribution margin ratio%%%%%%%%%%%c. All of the following are contributing reasons that Cat Japan is the poorest performing segment except:a. The manufacturing margin as a percentage of sales is the lowest.b. The dealer commissions as a percentage of sales are the highest.c. The variable promotion expenses as a percentage of sales are the highest.d. The variable cost of goods sold as a percentage of sales is the highest.e. None of these choices is correct.The correct answer is: Chapter 21O eBookSegment Profitability AnalysisThe marketing segment sales for Caterpillar Inc. (CAT) for a recent year follow:Caterpillar Inc.Machinery and Engines Marketing Segment Sales(in millions)BuildingLargeMarine &ConstructionCatCoreEarth ElectricPowerPetroleumProductsJapan Components moving Power Excavation Systems LogisticsPowerMining TurbinesSales$2,217$1,225$1,234$5,045 $2,847$4,562$2,885$659$2,132$3,975$3,321In addition, assume the following information:BuildingLargeMarine &Construction CatCoreEarth ElectricPowerPetroleumProductsJapan Components moving Power Excavation Systems LogisticsPowerMining TurbinesVariable cost of goods sold as a percent of sales45%55%49%51%54%52%53%50%50%52%48%Dealer commissions as a percent of sales9%11%8%8%10%6%5%10%9%7%9%Variable promotion expenses (in millions)31012015060020060030075270480400a. Use the sales information and the additional assumed information to prepare a contribution margin by segment report. Round answers to two decimal places, except for contributionmargin ratio, which should be rounded to one decimal place. Enter all amounts as positive numbers.Caterpillar Inc.Contribution Margin by Segment (assumed)(in millions, except ratio figures)Check My WorkPreviousChapter 21eBookamswers LO tWo decmar praces,d. Use the sares momatIOT anu tne duurionar assumeu mormaIUn to prepare a contIDutOT margm Dy segmenmargin ratio, which should be rounded to one decimal place. Enter all amounts as positive numbers.Caterpillar Inc.Contribution Margin by Segment (assumed)(in millions, except ratio figures)BuildingCoreMarine andCat JapanElectricLarge PowerLogisticsTurbinesConstructionComponents EarthmovingExcavationPetroleumMiningPowerSystemsProductsPowerSalesVariable cost ofgoods soldManufacturingmargin$4DealercommissionsVariablepromotionexpensesVariable sellingexpensesContributionmarginContribution%%%%%%%0%0%%%margin ratioFeedbackCheck My WorkPreviousChapter 21еВookb. Prepare a table showing the manufacturing margin, dealer commissions, and variable promotion expenses as a percent of sales for each segment. Round percents to one decimal place, if required. Enter allamounts as positive numbers.Caterpillar Inc.Contribution Margin by Segment (assumed)(in millions, except ratio figures)Building ConstructionCat JapanCoreElectricLarge PowerLogisticsMarine and PetroleumTurbinesEarthmovingExcavationMiningProductsComponentsPowerSystemsPowerManufacturing margin%%%%%%%Dealer commissions%%%%%%%%Variable promotion%%%%%%expensesContribution margin%%%%%%%%%%ratioFeedbackc. All of the following are contributing reasons that Cat Japan is the poorest performing segment except:a. The manufacturing margin as a percentage of sales is the lowest.b. The dealer commissions as a percentage of sales are the highest.c. The variable promotion expenses as a percentage of sales are the highest.d. The variable cost of goods sold as a percentage of sales is the highest.e. None of these choices is correct.The correct answer is:Check My WorkPreviousAssignment Score: 93.13%All work saved.Save and ExitSubmit Assignment for GradingModdod dooddoddddoddod dddoddo ddddHoddo d dddI bddo ddddoddoddddloddod dioddodddl

Name: Segment Profitability AnalysisThe marketing segment sales for Caterpil
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Description: Segment Profitability AnalysisThe marketing segment sales for Caterpillar Inc. (CAT) for a recent year follow: Caterpillar Inc.Machinery and Engines Marketing Segment Sales(in millions) BuildingConstructionProductsCatJapanCoreComponentsEarthmovingEle

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Segment Profitability AnalysisThe marketing segment sales for Caterpillar Inc. (CAT) for a recent year follow: Caterpillar Inc.Machinery and Engines Marketing Segment Sales(in millions) BuildingConstructionProductsCatJapanCoreComponentsEarthmovingElectricPowerExcavationLargePowerSystemsLogisticsMarine &PetroleumPowerMiningTurbinesSales$2,217$1,225$1,234$5,045$2,847$4,562$2,885$659$2,132$3,975$3,321In addition, assume the following information: BuildingConstructionProductsCatJapanCoreComponentsEarthmovingElectricPowerExcavationLargePowerSystemsLogisticsMarine &PetroleumPowerMiningTurbinesVariable cost of goods sold as a percent of sales45%55%49%51%54%52%53%50%50%52%48%Dealer commissions as a percent of sales9%11%8%8%10%6%5%10%9%7%9%Variable promotion expenses (in millions)31012015060020060030075270480400a.  Use the sales information and the additional assumed information to prepare a contribution margin by segment report. Round answers to two decimal places, except for contribution margin ratio, which should be rounded to one decimal place. Enter all amounts as positive numbers.Caterpillar Inc.Contribution Margin by Segment (assumed)(in millions, except ratio figures) Building Construction ProductsCat JapanCore ComponentsEarthmovingElectric PowerExcavationLarge Power SystemsLogisticsMarine and Petroleum PowerMiningTurbinesSales           Variable cost of goods sold           Manufacturing margin           Dealer commissions           Variable promotion expenses           Variable selling expenses           Contribution margin           Contribution margin ratio            b.  Prepare a table showing the manufacturing margin, dealer commissions, and variable promotion expenses as a percent of sales for each segment. Round percents to one decimal place, if required. Enter all amounts as positive numbers.Caterpillar Inc.Contribution Margin by Segment (assumed)(in millions, except ratio figures) Building Construction ProductsCat JapanCore ComponentsEarthmovingElectric PowerExcavationLarge Power SystemsLogisticsMarine and Petroleum PowerMiningTurbinesManufacturing margin%%%%%%%%%%%Dealer commissions%%%%%%%%%%%Variable promotion expenses%%%%%%%%%%%Contribution margin ratio%%%%%%%%%%%c.  All of the following are contributing reasons that Cat Japan is the poorest performing segment except:a. The manufacturing margin as a percentage of sales is the lowest.b. The dealer commissions as a percentage of sales are the highest.c. The variable promotion expenses as a percentage of sales are the highest.d. The variable cost of goods sold as a percentage of sales is the highest.e. None of these choices is correct.The correct answer is: Chapter 21O eBookSegment Profitability AnalysisThe marketing segment sales for Caterpillar Inc. (CAT) for a recent year follow:Caterpillar Inc.Machinery and Engines Marketing Segment Sales(in millions)BuildingLargeMarine &ConstructionCatCoreEarth ElectricPowerPetroleumProductsJapan Components moving Power Excavation Systems LogisticsPowerMining TurbinesSales$2,217$1,225$1,234$5,045 $2,847$4,562$2,885$659$2,132$3,975$3,321In addition, assume the following information:BuildingLargeMarine &Construction CatCoreEarth ElectricPowerPetroleumProductsJapan Components moving Power Excavation Systems LogisticsPowerMining TurbinesVariable cost of goods sold as a percent of sales45%55%49%51%54%52%53%50%50%52%48%Dealer commissions as a percent of sales9%11%8%8%10%6%5%10%9%7%9%Variable promotion expenses (in millions)31012015060020060030075270480400a. Use the sales information and the additional assumed information to prepare a contribution margin by segment report. Round answers to two decimal places, except for contributionmargin ratio, which should be rounded to one decimal place. Enter all amounts as positive numbers.Caterpillar Inc.Contribution Margin by Segment (assumed)(in millions, except ratio figures)Check My WorkPreviousChapter 21eBookamswers LO tWo decmar praces,d. Use the sares momatIOT anu tne duurionar assumeu mormaIUn to prepare a contIDutOT margm Dy segmenmargin ratio, which should be rounded to one decimal place. Enter all amounts as positive numbers.Caterpillar Inc.Contribution Margin by Segment (assumed)(in millions, except ratio figures)BuildingCoreMarine andCat JapanElectricLarge PowerLogisticsTurbinesConstructionComponents EarthmovingExcavationPetroleumMiningPowerSystemsProductsPowerSalesVariable cost ofgoods soldManufacturingmargin$4DealercommissionsVariablepromotionexpensesVariable sellingexpensesContributionmarginContribution%%%%%%%0%0%%%margin ratioFeedbackCheck My WorkPreviousChapter 21еВookb. Prepare a table showing the manufacturing margin, dealer commissions, and variable promotion expenses as a percent of sales for each segment. Round percents to one decimal place, if required. Enter allamounts as positive numbers.Caterpillar Inc.Contribution Margin by Segment (assumed)(in millions, except ratio figures)Building ConstructionCat JapanCoreElectricLarge PowerLogisticsMarine and PetroleumTurbinesEarthmovingExcavationMiningProductsComponentsPowerSystemsPowerManufacturing margin%%%%%%%Dealer commissions%%%%%%%%Variable promotion%%%%%%expensesContribution margin%%%%%%%%%%ratioFeedbackc. All of the following are contributing reasons that Cat Japan is the poorest performing segment except:a. The manufacturing margin as a percentage of sales is the lowest.b. The dealer commissions as a percentage of sales are the highest.c. The variable promotion expenses as a percentage of sales are the highest.d. The variable cost of goods sold as a percentage of sales is the highest.e. None of these choices is correct.The correct answer is:Check My WorkPreviousAssignment Score: 93.13%All work saved.Save and ExitSubmit Assignment for GradingModdod dooddoddddoddod dddoddo ddddHoddo d dddI bddo ddddoddoddddloddod dioddodddl

Accepted Answer

A group of companies may have various companies of the same group in different segments. Reporting…

	Caterpillar Inc. Machinery and Engines Marketing Segment Sales (in millions)
	Building Construction Products	Cat Japan	Core Components	Earth moving	Electric Power	Excavation	Large Power Systems	Logistics	Marine & Petroleum Power	Mining	Turbines
Sales	$2,217	$1,225	$1,234	$5,045	$2,847	$4,562	$2,885	$659	$2,132	$3,975	$3,321

Caterpillar Inc.
Contribution Margin by Segment (assumed)
(in millions, except ratio figures)
	Building Construction Products	Cat Japan	Core Components	Earthmoving	Electric Power	Excavation	Large Power Systems	Logistics	Marine and Petroleum Power	Mining	Turbines
Sales
Variable cost of goods sold
Manufacturing margin
Dealer commissions
Variable promotion expenses
Variable selling expenses
Contribution margin
Contribution margin ratio

t Profitability Analysis The marketing segment sales for Caterpillar Inc. (CAT) for a recent year follow: Caterpillar Inc. Machinery and Engines Marketing