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 Pixar 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. For a recent year, Disney reported the following segment results (in millions): Segment Segment Media Networks Parks, Experiences, and Products Direct-to- Segment Entertainment Consumer & International Revenues $28,393 $16,502 $9,636 $16,967 Operating expenses (19,400) (16,700) (7,100) (19,800) Operating income $8,993 $(198) $2,536 $(2,833) Assume the following percentages of total operating expenses for each segment are variable: Segment Percentage of Variable Operating Expenses Media Networks 75% Parks, Experiences, and 60% Products Studio Entertainment 80% Direct-to-Consumer & 70% International 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 b. Compute the contribution margin ratio for each segment. Round ratios to the nearest tenth of a percent. Contribution Media Networks Parks, Experiences, and Products Studio Entertainment Direct-to-Consumer & International Margin Ratio % % % % c. Based on your answers to (a) and (b), interpret the segment performance. All segments generated a contribution margin, even though the Parks, Experiences, and Products and Direct-to-Consumer & International The Media Networks segment generated the ratio. The Parks, Experiences, and Products and Studio Entertainment segments generated approximately the segments generated operating because of its size, the Parks, Experiences, and Products segment generated Direct-to-Consumer & International segment generated the COVID-19 pandemic contribution margin and contribution margin contribution margin ratios. However, contribution margin than the Studio Entertainment segment. The contribution margin ratio and contribution margin. The recent affected the preceding results. The Parks, Experiences, and Products and Studio Entertainment segments were affected. Thus, the preceding results are of Disney's normal operations for these segments