Managerial Accounting
15th Edition
ISBN: 9781337912020
Author: Carl Warren, Ph.d. Cma William B. Tayler
Publisher: South-Western College Pub
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Textbook Question
Chapter 10, Problem 14E
The Walt Disney Company (DIS) has four business segments, described as follows:
• Media Networks: Television and radio
• Parks and Resorts: Resorts, including Disneyland
• Studio Entertainment: Motion pictures, musical recordings, and stage plays
• Consumer Products & Interactive Media: Character merchandising, Disney stores, books, and games
Disney recently reported segment operating income, revenue, and invested assets (in millions) as follows:
a. Use the DuPont formula to determine the
b. How do the four segments differ in their profit margin, investment turnover, and return on investment?
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Return on investment
The Walt Disney Company (DIS) has four business segments, described as follows:
• Media Networks: Television and radio• Parks and Resorts: Resorts, including Disneyland• Studio Entertainment: Motion pictures, musical recordings, and stage plays• Consumer Products & Interactive Media: Character merchandising, Disney stores, books, and games
Disney recently reported segment operating income, revenue, and invested assets (in millions) as follows:
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:
Media Networks
Parks and Resorts
Studio Entertainment
Consumer Products
Income from
Invested
Operations
Revenue
Assets
$151,434
$676,800
$846,000
61,824
331,200
552,000
9,025
98,518
332,500
408,600
475,000
227,000
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.
Media Networks
Parks and Resorts
Studio Entertainment
Consumer Products
Profit Margin
Investment…
Game-On Sports operates in two distinct segments: athletic equipment and accessories. The income statement for each operating segment is presented below.Required:1. Complete the "%" columns to be used in a vertical analysis of Game-On Sports’ two operating segments. Express each amount as a percentage of sales. (Round your percentage answers to 1 decimal place.)
GAME-ON SPORTS
Income Statement
For the Year Ended December 31, 2021
Athletic Equipment
Accessories
Amount
%
Amount
%
Net sales
$2,800,000
$3,250,000
Cost of goods sold
1,250,000
1,620,000
Gross profit
1,550,000
1,630,000
Operating expenses
650,000
700,000
Operating income
900,000
930,000
Other income (expense)
75,000
(10,000)
Income before tax
975,000
920,000
Income tax expense
225,000
200,000
Net income
$750,000
$720,000
2. Use vertical analysis to compare the profitability of the two operating segments. Which segment is more…
Chapter 10 Solutions
Managerial Accounting
Ch. 10 - Differentiate between centralized and...Ch. 10 - Differentiate between a profit center and an...Ch. 10 - Prob. 3DQCh. 10 - What is the major shortcoming of using operating...Ch. 10 - In a decentralized company in which the divisions...Ch. 10 - How does using the return on investment facilitate...Ch. 10 - (a) Explain how return on investment might lead a...Ch. 10 - Prob. 8DQCh. 10 - Prob. 9DQCh. 10 - When using the negotiated price approach to...
Ch. 10 - Budgetary performance for cost center Vinton...Ch. 10 - Support department allocations The centralized...Ch. 10 - Prob. 3BECh. 10 - Profit margin, investment turnover, and ROI Briggs...Ch. 10 - Residual income The Commercial Division of Galena...Ch. 10 - Prob. 6BECh. 10 - Budget performance reports for cost centers...Ch. 10 - The following data were summarized from the...Ch. 10 - For each of the following support departments,...Ch. 10 - Prob. 4ECh. 10 - Service department charges In divisional income...Ch. 10 - Varney Corporation, a manufacturer of electronics...Ch. 10 - Horton Technology has two divisions, Consumer and...Ch. 10 - Rocky Mountain Airlines Inc. has two divisions...Ch. 10 - Championship Sports Inc. operates two divisionsthe...Ch. 10 - Prob. 10ECh. 10 - The operating income and the amount of invested...Ch. 10 - Prob. 12ECh. 10 - The condensed income statement for the Consumer...Ch. 10 - The Walt Disney Company (DIS) has four business...Ch. 10 - Prob. 15ECh. 10 - Prob. 16ECh. 10 - Materials used by the Instrument Division of...Ch. 10 - Prob. 18ECh. 10 - GHT Tech Inc. sells electronics over the Internet....Ch. 10 - Profit center responsibility reporting for a...Ch. 10 - Prob. 3PACh. 10 - Effect of proposals on divisional performance A...Ch. 10 - Divisional performance analysis and evaluation The...Ch. 10 - Prob. 6PACh. 10 - Prob. 1PBCh. 10 - Prob. 2PBCh. 10 - Prob. 3PBCh. 10 - Prob. 4PBCh. 10 - Divisional performance analysis and evaluation The...Ch. 10 - Prob. 6PBCh. 10 - Prob. 1MADCh. 10 - Prob. 2MADCh. 10 - Papa Johns International, Inc. (PZZA), operates...Ch. 10 - Panera Bread Company (PNRA) operates over 2,000...Ch. 10 - Prob. 5MADCh. 10 - Prob. 1TIFCh. 10 - Prob. 2TIFCh. 10 - Prob. 3TIFCh. 10 - The three divisions of Yummy Foods are Snack...Ch. 10 - Prob. 5TIFCh. 10 - Prob. 1CMACh. 10 - Prob. 2CMACh. 10 - Prob. 3CMACh. 10 - Morrisons Plastics Division, a profit center,...
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