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Unformatted text preview: How might a segmented contribution margin income statement be useful for National Car Rental? Segments are typically sub-areas of a business that generate revenues and expenses, and therefore a portion of the profits for the business. For National Car Rental, possible segments might be geographic: Northeastern rentals, Midwestern rentals, West Coast rentals, for example; or, possible segments could be type of car rented: SUVs, compacts, luxury sedans; or, possible segments could be customer type: Corporate customers, casual travelers, business people. A segmented contribution margin income statement might be useful for National for such decisions as whether to discontinue offering certain kinds of vehicles, whether to pursue a certain customer segment more heavily (if it is quite profitable), or whether to expand into a new area....
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This note was uploaded on 02/02/2010 for the course BUS-A 202 taught by Professor Keenan during the Spring '08 term at Indiana.
- Spring '08