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: Media Networks Parks and Resorts Studio Entertainment Consumer Products Income from Invested Operations Revenue Assets $151,434 $676,800 $846,000 61,824 331,200 552,000 9,025 98,518 332,500 408,600 475,000 227,000 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. Media Networks Parks and Resorts Studio Entertainment Consumer Products Profit Margin Investment Turnover 22 X % 0.8 % 0.6 % 0.7 % 1.8 b. How do the four sectors differ in their profit margin, investment turnover, and return on investment? Consumer Products has the highest profit margin, while Studio Entertainment has the lowest return on investment. Feedback ▼Check My Work Check My Work ROI 0.179 X % 11 X % % % has the lowest profit margin. Consumer Products has the highest return on investment, while Studio Entertainment Previous Next
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: Media Networks Parks and Resorts Studio Entertainment Consumer Products Income from Invested Operations Revenue Assets $151,434 $676,800 $846,000 61,824 331,200 552,000 9,025 98,518 332,500 408,600 475,000 227,000 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. Media Networks Parks and Resorts Studio Entertainment Consumer Products Profit Margin Investment Turnover 22 X % 0.8 % 0.6 % 0.7 % 1.8 b. How do the four sectors differ in their profit margin, investment turnover, and return on investment? Consumer Products has the highest profit margin, while Studio Entertainment has the lowest return on investment. Feedback ▼Check My Work Check My Work ROI 0.179 X % 11 X % % % has the lowest profit margin. Consumer Products has the highest return on investment, while Studio Entertainment Previous Next
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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:
Media Networks
Parks and Resorts
Studio Entertainment
Consumer Products
Income from
Invested
Operations
Revenue
Assets
$151,434
$676,800
$846,000
61,824
331,200
552,000
9,025
98,518
332,500
408,600
475,000
227,000
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.
Media Networks
Parks and Resorts
Studio Entertainment
Consumer Products
Profit Margin
Investment Turnover
22 X %
0.8
%
0.6
%
0.7
%
1.8
b. How do the four sectors differ in their profit margin, investment turnover, and return on investment?
Consumer Products
has the highest profit margin, while Studio Entertainment
has the lowest return on investment.
Feedback
▼Check My Work
Check My Work
ROI
0.179 X %
11 X %
%
%
has the lowest profit margin. Consumer Products
has the highest return on investment, while Studio Entertainment
Previous
Next
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