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	$133,175		$456,600		$761,000
Parks and Resorts	74,670		458,500		655,000
Studio Entertainment	10,626		369,600		462,000
Consumer Products	92,664		421,200		234,000

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? Media Networks has the highest profit margin, while Studio Entertainment has the lowest profit margin. Consumer Products has the highest return on investment, while Studio Entertainment has the lowest return on investment.