The following information is from Dave’s Sporting Goods. Dave’s is a Midwest sporting goods store with three regional stores. The August income statement for all stores is shown.

A. Comment on the operating income results for each store.

B. Now assume the costs allocated from corporate is an uncontrollable cost for each store. How does this change your assessment of each store?

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Sales Cost of goods sold Gross profit Expenses Selling expenses Wages expense Costs allocated from corporate Total expenses Operating income (loss) DAVE'S SPORTING GOODS Income Statement Month Ending August 31, 2018 Nebraska $22,000 10,000 $12,000 1,000 6,000 3,000 $10,000 $ 2,000 Iowa $51,000 25,000 $26,000 3,200 9,000 15,000 $27,200 ($ 1,200) Illinois $36,000 19,000 $17,000 2,100 8,000 5,500 $15,600 $ 1,400