McDonald's Corporation (MCD) operates company-owned and franchised restaurants in over 100 countries, The company operates primarily as a franchisor with approximately 95% of its current restaurants operated by franchisees. McDonald's operations are divided into the following segments: - United States: Restaurants thiroughout the United States - Intemational Operated Markets: Restaurants in Australla, Canada, France, Germany, ltaly, the Netherlands, Russla, Spain, and the United Kingdom - International Developmental Uicensed Markets 8 Corporate: Restaurants in other international locations around the globe, as well as all corporate activities McDonald's believes that the International Developmental Licensed Markets s. Corporate segment has significant potential for rapid growth and expansion. Recent data (in millons) for the three segments are as foliows: a. Oetermine the protit margin for each of the three segments. Round to one decimal place. b. Determine the investment tumover for the three segments. Round to two decimal places. c. Use the DuPont formula to determine the return on investment for the three segments. Round to one decimal place. 1. The U.S. vegment has the highest protic margin of the three segments, The U.S. segment's investment turnover is aiso relativeiy high. 2. The Intemational Operated Markets segment's profit margin is loner than the U,S. segment's, but it has a simular investment turnover, yleldig anly a slightiy lower retum on investment 3. The Intemational Developmentat Ucensed Markets a Corporate segment has the lowest profi margin. This may be due to promotions and a low-bricing strategy that attempts to graw manket share. This segment also has a low inveitment turnover, which yelds a retum on investment. McDonald's will monitor the operations of the International Developmental Licensed Markets a Comporate segment to see if it can meet iss high growth and profit expectations. 4. All of the above are trive