determine the return on investment for the four Commodore Entertainment sectors. Round Profit Margin and ROI to one decimal place and Investment Turnover
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 | $163,582 | $735,200 | $919,000 | |||
| Parks and Resorts | 73,625 | 353,400 | 589,000 | |||
| Studio Entertainment | 16,668 | 324,100 | 463,000 | |||
| Consumer Products | 80,164 | 352,800 | 196,000 |
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 | fill in the blank 1 % | fill in the blank 2 | fill in the blank 3 % |
| Parks and Resorts | fill in the blank 4 % | fill in the blank 5 | fill in the blank 6 % |
| Studio Entertainment | fill in the blank 7 % | fill in the blank 8 | fill in the blank 9 % |
| Consumer Products | fill in the blank 10 % | fill in the blank 11 | fill in the blank 12 % |
b. How do the four sectors differ in their profit margin, investment turnover, and return on investment?
has the highest profit margin, while has the lowest profit margin. has the highest return on investment, while has the lowest return on investment.
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