Payton Company Has the Following Segment Revenues for the Two

question 92

Essay

Payton Company has the following segment revenues for the two most recent years.?? $$\begin{array} { | l | r | r | } \hline \text { Segment } & \begin{array} { c } \text { Current Year } \\\text { (in millions) }\end{array} & \begin{array} { c } \text { Prior Year } \\\text { (in millions) }\end{array} \\\hline \text { United States } & \$ 825.00 & \$ 600.00 \\\hline \text { Canada } & 325.50 & 345.50 \\\hline \text { Other countries } & \underline{215.50} & \underline{168.50} \\\hline \text { Total revenues } & \mathbf {\$ 1,366.00} & \mathbf { \$ 1 , 1 1 4 . 0 0 } \\\hline\end{array}$$ Prepare a horizontal analysis of the segment data. Round to one decimal place.

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Definitions:

Short-Run

A time period in which at least one factor of production is fixed, limiting the ability of firms to adjust to changes in market conditions fully.

Marginal Cost Curve

A graphical representation that shows the change in total cost when an additional unit is produced; typically upward-sloping due to increasing marginal costs.

Average Fixed Cost

The total fixed costs of production divided by the quantity of output produced, indicating the per unit fixed cost.

Fixed Costs

Costs that do not vary with the level of output, such as rent, salaries, and insurance premiums.