Return on investmentCommodore 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 magazinesCommodore Entertainment recently reported sector income from operations, revenue, and invested assets as follows: Income from Operations Revenue Invested AssetsMedia Networks$193,644 $586,800 $978,000 Parks and Resorts63,954 392,700 561,000 Studio Entertainment12,927 333,600 417,000 Consumer Products118,233 469,800 261,000 a. Use the 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 MarginInvestment TurnoverROIMedia Networks % %Parks and Resorts % %Studio Entertainment % %Consumer Products % %

Du Pont formula refers to the method for assessing company's Return on Equity.

Answered: DuPont formula

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter10: Evaluating Decentralized Operations

Section: Chapter Questions

Problem 14E: The Walt Disney Company (DIS) has four business segments, described as follows: Media Networks:...

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Return on investment

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	$193,644		$586,800	$978,000
Parks and Resorts	63,954		392,700	561,000
Studio Entertainment	12,927		333,600	417,000
Consumer Products	118,233		469,800	261,000

a. Use the 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	%		%

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