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Rate of Return on Investment Commodore Entertainment recently reported sector in

ID: 2469610 • Letter: R

Question

Rate of Return on Investment

Commodore Entertainment recently reported sector income from operations, revenue, and invested assets as follows:

Use the DuPont formula to determine the rate of return on investment for the four Commodore Entertainment sectors. Round Profit Margin, ROI to one decimal place and Investment Turnover to two decimal places.

    Income from
    Operations
    
Revenue     Invested
    Assets
Media Networks $123,861 $545,300 $779,000 Parks and Resorts 71,625 458,400 573,000 Studio Entertainment 8,440 379,800 422,000 Consumer Products 104,384 380,800 224,000

Explanation / Answer

Statement showing computations Particulars Income from Operations Revenue Invested Assets Profit Margin =Income/Revenue Investment Turnover = Revenue/Invested Assets ROI = Margin*Turnover Media Networks                                  123,861.00           545,300.00               779,000.00 22.71%                                                         0.70 15.90% Parks and Resorts                                    71,625.00           458,400.00               573,000.00 15.63%                                                         0.80 12.50% Studio Entertainment                                      8,440.00           379,800.00               422,000.00 2.22%                                                         0.90 2.00% Consumer Products                                  104,384.00           380,800.00               224,000.00 27.41%                                                         1.70 46.60%