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, Direct-to- and Products Segment Entertainment Consumer & International Revenues $28,393 $16,502 $9,636 $16,967 Operating expenses (19,200) (16,700) (7,200) (19,700) Operating Income 59,193 $(198) $2,436 $(2,733) Assume the following percentages of total operating expenses for each segment are variable: Segment Media Networks Parks, Experiences, and Percentage of Variable Operating Expenses 75% 60% Products Studio Entertainment Direct-to-Consumer & International 80% 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 Line Item Description Media Networks (in millions) 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 Margin Ratio Media Networks Parks, Experiences, and Products Studio Entertainment Direct-to-Consumer & International c. Based on your answers to (a) and (b), interpret the segment performance. All segments generated a operating contribution margin ratio and The Parks, Experiences, and Products and Studio Entertainment segments were normal operations for these segments. contribution margin, even though the Parks, Experiences, and Products and Direct-to-Consumer & International segments generated The Media Networks segment generated the contribution margin and contribution margin ratio. The Parks, Experiences, and Products and Studio Entertainment segments generated approximately the contribution margin ratios. However, because of its size, the Parks, Experiences, and Products segment generated ( contribution margin than the Studio Entertainment segment. The Direct-to-Consumer & International segment generated the contribution margin. The recent COVID-19 pandemic affected the preceding results of Disney's affected. Thus, the preceding results are