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Unformatted text preview: 23000 and the profitability can also be found out. Review of segments 1 Eventhougth the company has earned a total profit of 27000, the profit earned by Eastern territory is 170000 and the profit is and the profit is only 32000 in the central territory. Therefore, the management needs to take steps to improve the profitability of central territory. 2 While reviewing central territory, the major profit is from the product Paws (i.e., 63000) as against the profit of 15000 from Haws. Therefore, steps need to be taken to improve the profitability of eastern division either by concentrating more on Paws or any other measures to improve the sales of these two products by sales promotion or advertsing. . Then only, it can be possible for the company to improve the overall profitability of the organisation....
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- Summer '11
- Managerial Accounting