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.


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