Commodore Entertainment has four profitable business segments, described as follows: Media Networks: Television and...
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Commodore Entertainment has four profitable business segments, described as follows:
Media Networks: Television and radio Parks and Resorts: Resorts, including Commodore land Studio Entertainment: Motion pictures, musical recordings, and stage plays Consumer Products: Character merchandising, Commodore stores, books, and magazines
Commodore Entertainment recently reported sector income from operations, revenue, and invested assets as follows:
Income from Operations
Revenue
Invested Assets
Media Networks
$134,992
$690,300
$767,000
Parks and Resorts
74,015
524,000
655,000
Studio Entertainment
11,542
278,600
398,000
Consumer Products
118,016
460,800
256,000
a. Use the An expanded expression of return on investment determined by multiplying the profit margin by the investment turnover.DuPont formula to determine the return on investment for the four Commodore Entertainment sectors. Round Profit Margin and ROI to one decimal place and Investment Turnover to two decimal places.
Profit Margin
Investment Turnover
ROI
Media Networks
%
%
Parks and Resorts
%
%
Studio Entertainment
%
%
Consumer Products
%
%
b. How do the four sectors differ in their profit margin, investment turnover, and return on investment?
Media Networks
Studio Entertainment
Parks and Resorts
Consumer Products
has the highest profit margin, while < >Media Networks
Studio Entertainment
Parks and Resorts
Consumer Products
has the lowest profit margin. < >Media Networks
Studio Entertainment
Parks and Resorts
Consumer Products
has the highest return on investment, while < >Media Networks
Studio Entertainment
Parks and Resorts
Consumer Products
has the lowest return on investment.
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