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

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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
Revenues
Segment
$28,393
$16,502
$9,636
Operating expenses
(19,371)
(16,583)
(7,135)
Operating income
$9,022
$(81)
$2,501
Assume the following percentages of total operating expenses for each segment are variable:
Media Networks
Parks, Experiences, and
Products
Studio Entertainment
Direct-to-Consumer &
Segment
Media
Networks
International
Percentage of
Variable
Operating Expenses
75%
60%
80%
Segment
Entertainment
70%
Direct-to-
Consumer
& International
The Walt Disney Company
Variable 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 amounts
to the nearest million.

Studio Entertainment
Direct-to-Consumer &
International
Line Item Description
a. Prepare a variable costing income statement for The Walt Disney Company by segment. Round all amounts
to the nearest million.
Operating income/loss
Media Networks
$
Studio Entertainment
80%
The Walt Disney Company
Variable Costing Income Statement
(in millions)
Media Parks, Experiences,
Networks and Products
Parks, Experiences, and Products
70%
LA
Direct-to-Consumer & International
b. Compute the contribution margin ratio for each segment. Round ratios to the nearest tenth of a percent.
Contribution
Margin Ratio
%
%
%
Studio
Entertainment
%
$
Direct-to-Consumer &
International
$

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