Chapter 12 Homework 1

Chapter 12 Homework 1 - Also Southern Europe has...

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Chapter 12-21 1. Because it is an internal report, the income statement would be better in contribution margin form, also, there should be data on all of the regions combined to make it easier to compare each to the whole. 2. Advertising expenses are 1/20 of sales and general admin is being allocated equally across the regions. Corporate expenses should not be allocated to regions 3. Next page 4. Clearly Northern Europe needs to be addressed because of its negative segment margin.
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Unformatted text preview: Also, Southern Europe has significantly lower sales than the other two. Although all of the segments together turn a profit, corporate expenses turn that into a loss. Northern Europe’s salaries are double that of the two other regions. With all the people that the have on staff, they should be able to sell much more...
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