Commodore Entertainment has four profitable business segments, described as follows: Media Networks: Television and...

70.2K

Verified Solution

Question

Accounting

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.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students