Segment Contribution Margin AnalysisThe Walt Disney Company (DIS) is a global entertainment company that is organized into four businesssegments 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 Lineand 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):SegmentParks,Experiences,and ProductsRevenuesSegment$28,393$16,502$9,636Operating expenses(19,371)(16,583)(7,135)Operating income$9,022$(81)$2,501Assume the following percentages of total operating expenses for each segment are variable:Media NetworksParks, Experiences, andProductsStudio EntertainmentDirect-to-Consumer &SegmentMediaNetworksInternationalPercentage ofVariableOperating Expenses75%60%80%SegmentEntertainment70%Direct-to-Consumer& InternationalThe Walt Disney CompanyVariable Costing Income Statement$16,967(19,773)$(2,806)a. Prepare a variable costing income statement for The Walt Disney Company by segment. Round all amountsto the nearest million. Studio EntertainmentDirect-to-Consumer &InternationalLine Item Descriptiona. Prepare a variable costing income statement for The Walt Disney Company by segment. Round all amountsto the nearest million.Operating income/lossMedia Networks$Studio Entertainment80%The Walt Disney CompanyVariable Costing Income Statement(in millions)Media Parks, Experiences,Networks and ProductsParks, Experiences, and Products70%LADirect-to-Consumer & Internationalb. Compute the contribution margin ratio for each segment. Round ratios to the nearest tenth of a percent.ContributionMargin Ratio%%%StudioEntertainment%$Direct-to-Consumer &International$

Income statement is a financial statement which shows the profitability of a ongoing concern over a…

The Walt Disney Company (DIS) is a global entertainment company that is organized into four business egments as follows: Media Networks: elevision production and distribution, including ABC television network, ESPN, National Geographic. arks, Experiences, and Products: heme parks and resorts, including Walt Disney World and Disneyland; Experiences, including Disney Cruise Line nd Disney Vacation Club; Products, including Disney and Pixar characters, comic books, and magazines. tudio Entertainment: lusic and motion picture production and distribution, including Twentieth Century Studios, Marvel, and Lucasfilm.

The Walt Disney Company (DIS) is a global entertainment company that is organized into four business egments as follows: Media Networks: elevision production and distribution, including ABC television network, ESPN, National Geographic. arks, Experiences, and Products: heme parks and resorts, including Walt Disney World and Disneyland; Experiences, including Disney Cruise Line nd Disney Vacation Club; Products, including Disney and Pixar characters, comic books, and magazines. tudio Entertainment: lusic and motion picture production and distribution, including Twentieth Century Studios, Marvel, and Lucasfilm.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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