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 Media Networks Segment Parks, Experiences, and Products Direct-to- Revenues $28,393 Operating expenses (19,400) $16,502 (16,600) Segment Entertainment $9,636 Consumer & International $16,967 (7,000) (19,900) Operating income $8,993 $(98) $2,636 $(2,933) Assume the following percentages of total operating expenses for each segment are variable: Segment Media Networks Percentage of Variable Operating Expenses 75% Parks, Experiences, and 60% Products Studio Entertainment 80% Direct-to-Consumer & 70% International