Question

Tutorial 10 -Extension Question -Decentralisation and modern performance management systems Yilmaz runs a popu including kebabs, gozleme and baklava. During the month of September Yilmaz so 750 Gozleme and 250 pieces of Baklava. Yilmaz paid rent of $ person for $500 per month. lar food shop in the local shopping centre and sells a variety of food products ld 500 Kebabs, 1,000 per month, and employed a sa les The last month of performance has been presented below: Kebabs Gozleme Baklava Selling Price per unit Variable costs per unit Traceable fixed expense $10 $3 1,000 1,000 750 Yilmaz is planning to undertake a marketing campaign next week to try and improve sales during the lunch time rush. The advertising campaign is expected to cost $500 and only one product can be featured. Yilmaz believes that the marketing campaign will lead to a $1,000 increase in sales regardless of which product he advertises, and is planning to promote sales of Gozleme. 1. Prepare a segmented Income Statement with a column for each product, and the total company Do you agree or disagree with Yilmaz that he should spend $500 on promoting Gozleme if it will increase sales by $1,000? Why or why not. Which product do you think should be featured in the marketing campaign? What other advice do you have for Yilmaz regarding his business? 2. 3. 4.

 



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *