Answer and Explanation:
a. Below is the computation of the contribution margin for each segment:
(in millions)
Details Investor Advisor Services Services
Revenue from
operations $1,681 $1,660
Plus:
Depreciation $171 $154
Contribution
Margin $1,852 $1,814
2. Next, we assess the decrease in operating income
(in millions)
Details Combined services Institutional Services
Total Revenue $9,368 $4,771
Less:
Variable expense $5,702 $2,919
($2,919 + $2,783)
Contribution
margin $3,666 $1,852
Less:
Fixed costs -$325 -$171
Net earnings $3,341 $1,681
So from the previous calculations, it shows that the net operating income has decreased by
= $3,341 - $1,681
= $1,660 million
The variable costs can be calculated as
= Service revenues minus income from operations minus depreciation expense
Response:
quantitative marketing research method
Clarification:
A quantitative marketing research method involves conducting surveys and polls to gather accurate information regarding products and services, which is known as a quantitative marketing research method.
This approach allows consumers to provide feedback about the product in an unbiased way, enabling the collection of their preferences and aversions.
Techniques such as blind tests and surveys are utilized in this process.
Thus, based on the situation presented in the question,
the answer is quantitative marketing research method.
