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Disney Corporation implemented a $2 billion cost-saving initiative across its global operations. The company reported the following financial figures: Cost-Saving Initiative: $2 billion Total Revenue:

  • Disney Corporation implemented a $2 billion cost-saving initiative across its global operations. The company reported the following financial figures:
    • Cost-Saving Initiative: $2 billion
    • Total Revenue: $75 billion
    • Operating Income: $20 billion
    • Net Income: $15 billion
  • Requirements:
    1. Calculate Disney's net income after accounting for the cost-saving initiative.
    2. Prepare a comparative income statement showing the impact of cost-saving measures on net income.
    3. Analyze the operating profit margin before and after the cost-saving initiative.
    4. Discuss the sustainability of cost reductions in Disney's financial performance.
    5. Evaluate the impact of cost-saving measures on Disney's customer satisfaction and market share.

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