Segment Contribution Margin Analysis The Walt Disney Company (DIS) is a global entertainment company that is organized into four business segments as follows: Media Networks: Television production and distribution, including ABC television network, ESPN, National Geographic Parks, Experiences, and Products: Theme parks and resorts, including Walt Disney World and Disneyland; Experiences, including Disney Cruise Line and Disney Vacation Club; Products, including Disney and Pocar characters, comic books, and magazines. Studio Entertainment: Music and motion picture production and distribution, including Twentieth Century Studios, Marvel, and Lucasfilm. Direct-to-Consumer & International: Streaming services, including Disney+, ESPN+, and Hulu. I For a recent year, Disney reported the following segment results (in millions) Segment Revenues Operating expenses Operating income - Segment Media Networks Parks, Experiences, and Products Direct-to- Segment Entertainment Consumer & International $28,393 $16,502 $9,636 $16,967 (19,300) (16,700) (7,200) (19,800) $9,093 $(198) $2,436 $(2,833) Assume the following percentages of total operating expenses for each segment are variable: Percentage of Mariahle Segment Percentage of Variable Operating Expenses Media Networks 75% Parks, Experiences, and 60% Products Studio Entertainment 80% Direct-to-Consumer & Internationa 70% a. Prepare a variable costing income statement for The Walt Disney Company by segment. If required, use a minus sign to indicate an operating loss. Round all amounts to the nearest million. The Walt Disney Company Variable Costing Income Statement (in millions) Line Item Description Media Networks Parks, Experiences, and Products Studio Entertainment Direct to Consumer & International Operating income/loss . Compute the contribution margin ratio for each segment. Round ratios to the nearest tenth of a percent. b. Compute the contribution margin ratio for each segment. Round ratios to the nearest tenth of a percent. Media Networks Parks, Experiences, and Products Studio Entertainment Direct-to-Consumer & International Contribution Margin Ratio % % % 94 c. Based on your answers to (a) and (b), interpret the segment performance. All segments generated a generated operating contribution margin, even though the Parks, Experiences, and Products and Direct-to-Consumer & International segments: The Media Networks segment generated the Experiences, and Products and Studio Entertainment segments generated approximately the ( Parks, Experiences, and Products segment generated segment generated the contribution margin ratio and) affected the preceding results. The Parks, Experiences, and Products and Studio Entertainment segments were U of Disney's normal operations for these segments. contribution margin and contribution margin ratio. The Parks, contribution margin ratios. However, because of its size, the contribution margin than the Studio Entertainment segment. The Direct-to-Consumer & International contribution margin. The recent COVID-19 pandemic ( affected. Thus, the preceding results are