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Return on investment Commodore Entertainment has four profitable business segments, described as follows: • Media Networks:...

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:

    Income from
    Operations		     
Revenue		     Invested
    Assets
Media Networks $172,354 $757,600 $947,000
Parks and Resorts 55,358 373,200 622,000
Studio Entertainment 5,115 238,700 341,000
Consumer Products 108,129 460,700 271,000

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 % %
Parks and Resorts % %
Studio Entertainment % %
Consumer Products % %

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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