1) Finish filling out the numbers on the Profit/Loss statement for Colombo Yogurt using ABC techniques.

2)Using the ABC analysis you completed on the worksheet answer the following questions. - Which segment has the most sales revenue? - Which segment has the largest net income? What does the ABC analysis reveal? Be sure and look at what drives the cost and be specific.

3) What changes would you suggest to help General Mills? Your answer should reflect something that you observed by looking at the profit/loss statement before and after the activity analysis.

Colombo Sof-Serve Frozen Yogart Income Statement Category Line Total Impulse Segment | Yogart Shops Sales in Cases 1,500,000 200,000 300,000 Sales Revenue 2 Less: Price Promotions S 29850,000 4,500,000 23,880000 SS970,000 3,600,000 900,000 3 Net Sales (Line 1-2) 4 Less: Cost of Goods sold S 25350,000 20280,000 5,070,000 $ 17,250000 13,800,000 3,450,000 5 Gross Margin - Net Sales - COGS (Line 3-4) S 8,100,000 s 66,480,000 6 Less: Merchandising Expenses 1,725,000 1.80,000 7 Less: Selling General & Admin. Expenses 1,185,000 948,000 8 Net Income (Line 7-8-9) s 19000 Es ,152.000 $1,620,000 345,000 237,000 1018,000 ACTIVITY BASED COSTING ANALYSIS Colombo Soft-serve Frozen Yogart Income Statement Cost Category cost Diet Yogart Shops Pe Impulse Yogart Segment Shops Total Impulse Segment Driver Quantity Quantity Quantity Tota * Sales in Cases .200,000 Sales Revenue $ 29,850,000 4500,000 23,880000 $ 5,970,000 2 Less: Price Promotions 3,600000 3 Net Sales (Line 1-2) 4 COGS (ingred, pkg. & storing) 5 coGs (pick pack & shipping) Pallets 6 COGs (pick pack & shipping) Ind. Cases Total Cost of goods Sold (Line 4+5+ 6) 8 Gross Margin - Net Sales - COGS (Line 3 -7) 9 LessMerchandising Expenses 10 Less: SellingGeneral & Admin. Expenses 11 Net Income (Line 8 - 9 - 10) S 25350000ES 20,280,000 SS070,000 S 14,250,000 causess9.50 300,000 M Pallets 75 per pellet 2,700,000 200,000 800 3,200 4000 900,000 D Times of time on 16 Loans 2A175,000