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	$132,132		$677,600		$847,000
Parks and Resorts	45,990		441,000		630,000
Studio Entertainment	8,132		385,200		428,000
Consumer Products	124,704		489,600		288,000

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	fill in the blank 1 %	fill in the blank 2	fill in the blank 3 %
Parks and Resorts	fill in the blank 4 %	fill in the blank 5	fill in the blank 6 %
Studio Entertainment	fill in the blank 7 %	fill in the blank 8	fill in the blank 9 %
Consumer Products	fill in the blank 10 %	fill in the blank 11	fill in the blank 12 %

b. How do the four sectors differ in their profit margin, investment turnover, and return on investment?

Media NetworksStudio EntertainmentParks and ResortsConsumer Products

has the highest profit margin, while

Media NetworksStudio EntertainmentParks and ResortsConsumer Products

has the lowest profit margin.

Media NetworksStudio EntertainmentParks and ResortsConsumer Products

has the highest return on investment, while

Media NetworksStudio EntertainmentParks and ResortsConsumer Products

has the lowest return on investment.