Rate of Return on Investment

Commodore Entertainment recently reported sector income from operations, revenue, and invested assets as follows:

• Media Networks: The ABC television and radio network, Commodore channel, ESPN, A&E, E!, and Commodore.com
• Parks and Resorts: Commodore World Resort, Commodoreland, Commodore Cruise Line, and other resort properties
• Studio Entertainment: Commodore Entertainment, which releases films by Pixar Animation Studios, Marvel Studios, Commodore/Lucasfilm, and Touchstone Pictures
• Consumer Products: Character merchandising, Commodore stores, books, and magazines

Commodore recently reported sector income from operations, revenue, and invested assets (in millions) as follows:

	Income from Operations		Revenue		Invested Assets
Media Networks	$139,776		$499,200		$832,000
Parks and Resorts	54,825		451,500		645,000
Studio Entertainment	13,048		372,800		466,000
Consumer Products	67,353		282,600		157,000

a. Use the DuPont formula to determine the rate of return on investment for the four Commodore Entertainment sectors. Round Profit Margin, 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.