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1. EA4. LO 9.3 The following information is from Dave's Sporting Goods. Dave's is a Midwest sporting goods store with three regional stores. The August
1. EA4. LO 9.3 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. DAVE'S SPORTING GOODS Income Statement Month Ending August 31, 2018 Nebraska Iowa Illinois Sales $22,000 $51,000 $36,000 Cost of goods sold 10,000 25,000 19,000 Gross profit $12,000 $26,000 $17,000 Expenses Selling expenses 1,000 3,200 2,100 Wages expense 6,000 9,000 8,000 Costs allocated from corporate 3,000 15,000 5,500 Total expenses $10,000 $27,200 $15,600 Operating income (loss) $ 2,000 ($ 1,200) $ 1,400 A. Comment on the operating income results for each store. B. Now assume the costs allocated from corporate are an uncontrollable cost for each store. How does this change your assessment of each store
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