Assume that next year, Research in Motion sells off its interest in TIP Communications (one of its subsidiaries). Forecasted information about the operations for RIM and TIP for that future fiscal year immediately prior to the proposed sale follows:
|
$millions
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RIM*
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TIP
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Total
|
|
Revenues
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$20,943
|
$1,727
|
$22,670
|
|
Operating expenses
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$20,321
|
$1,971
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$22,292
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*Does not include TIP results. Includes cost of goods sold
1. Compute operating income for RIM and TIP, separately, and the total operating income for both.
2. If the results in part 1 for TIP are typical, why do you believe RIM decided to sell off its interest in TIP?