Segment size = 60 million (<15 yrs) %3D Segmentation Adoption Percentage 35% Purchase Behavior = $500 x 1 time purchase %3D Profit margin % = 10% Fixed Cost = $50M %3D Cor

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter14: Capital Structure Management In Practice
Section: Chapter Questions
Problem 14P
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Profitable Segments
Segment size = 60 million (<15 yrs)
Segmentation Adoption Percentage 35%
Purchase Behavior = $500
x 1 time purchase
%3D
Profit margin % = 10%
• Fixed Cost = $50M
Conatoik AuStut
Is this segment profitable?
Transcribed Image Text:Profitable Segments Segment size = 60 million (<15 yrs) Segmentation Adoption Percentage 35% Purchase Behavior = $500 x 1 time purchase %3D Profit margin % = 10% • Fixed Cost = $50M Conatoik AuStut Is this segment profitable?
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