Segment Contribution Margin Analysis The Walt Disney Company (DIS) is a global entertainment company that is organized into four business segments as follows: Media Networks: Television production and distribution, including ABC television network, ESPN, National Geographic. Parks, Experiences, and Products Theme parks and resorts, including Walt Disney World and Disneyland; Experiences, including Disney Cruise Line and Disney Vacation Club: Products, including Disney and Pixar characters, comic books, and magazines. Studio Entertainment Music and motion picture production and distribution, including Twentieth Century Studios, Marvel, and Lucasfilm. Direct-to-Consumer & International Streaming services, including Disney+, ESPN+, and Hulu. For a recent year, Disney reported the following segment results (in millions): Segment Parks, Experiences, and Products Segment Media Networks Parks, Experiences, and Products Studio Entertainment Direct-to-Consumer & Revenues $16.502 Operating expenses (16,700) Operating income $(198) Assume the following percentages of total operating expenses for each segment are variable: Internationa Segment Media Networks Line Item Description Operating income/loss $28.393 (19,300) $9,093 Percentage of Variable Operating Expenses Media Networks Parks, Experiences, and Products Studio Entertainment 75% 60% 80% 70% a. Prepare a variable costing income statement for The Walt Disney Company by segment. If required, use a minus sign to indicate an operating loss. Round all amounts to the nearest million. The Walt Disney Company Variable Costing Income Statement (in millions) Media Parks, Experiences, Studio Networks and Products Entertainment % Direct-to- Consumer Segment Entertainment & International % $9,636 (7.000) $2.636 % b. Compute the contribution margin ratio for each segment. Round ratios to the nearest tenth of a percent. Contribution Margin Ratio $16.967 (19,900) $(2,933) Direct-to-Consumer & International Direct-to-Consumer & International c. Based on your answers to (a) and (b), interpret the segment performance. All segments generated a contribution margin, even though the Parks, Experiences, and Products and Direct-to-Consumer & International segments generated operating ( Products and Studio Entertainment segments generated approximately the contribution margin ratios. However, because of its size, the Parks, Experiences, and Products, segment generated contribution margin ratio and contribution margin. The recent COVID-19 pandemic affected the preceding results, The Racks normal.pnerations for these renments. The Media Netve