
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Homework help. Chapter 21 number 6. Need help filling in the missing data on part b. Thanks for the help!

Transcribed Image Text: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
Parks,
Experiences,
and Products
Revenues
$16,502
Operating expenses
(16,600)
Operating income
$(98)
Assume the following percentages of total operating expenses for each segment are variable:
Segment
Media Networks
Parks, Experiences, and
Products
Studio Entertainment
Direct-to-Consumer &
International
Segment
Media
Networks
$28,393
(19,400)
$8,993
Percentage of
Variable
Operating Expenses
75%
60%
80%
70%
Direct-to-
Consumer
Segment
Entertainment & International
$9,636
(7,200)
$2,436
$16,967
(19,800)
$(2,833)
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.

Transcribed Image Text: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.
Line Item Description
Sales
Variable operating expenses
Contribution margin
Fixed operating expenses
Operating income/loss
Feedback
Check My Work
Correct
Media Networks
Parks, Experiences, and Products
Studio Entertainment
The Walt Disney Company
Variable Costing Income Statement
(in millions)
Direct-to-Consumer & International
Media
Networks
28,393
14,550 ✔
13,843
4,850
8,993
%
%
%
Parks, Experiences,
and Products
16,502
9,960
X %
6,542
6,640
-98
Studio
Entertainment
9,636
5,760
3,876
1,440
b. Compute the contribution margin ratio for each segment. Round ratios to the nearest tenth of a percent.
Contribution
Margin Ratio
2,436
Direct-to-Consumer &
International
16,967
13,860
3,107
5,940
-2,833
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