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a) The following information is from Musical Inc. Ltd. It sells musical instruments with three stores in three different states across Australia. The July income
a) The following information is from Musical Inc. Ltd. It sells musical instruments with three stores in three different states across Australia. The July income statement for all stores is shown below: Musical Inc. Ltd.~ Income Statement Month Ending July 31, 20234 VICTORIA Store NSW Store QUEENSLAND Stored Sales $52 920 $32 340 $74 970- Cost of goods sold 27 930 14 700 36 750- Gross profit $24 990 $17 640 $38 220~ Expenses Selling expenses 3 087 1 470 4 704- Wages expense 11 760 8 820 13 230- Costs allocated from head office 8 085 4 410 22 050 Total expenses $22 932 $14 700 539 984- i. Comment on the operating income results for each store. ii. Now assume the costs allocated from corporate is an uncontrollable cost for each store. How does this change your assessment of each store? Explain. B) The owner of Advertising Pro wants to adopt the Balanced Scorecard in the company. There are two divisions: Video production and Radio. He has asked you to explain how BSC can improve his company's performance. Write a short report to convince him to implement BSC, and justify your reasons. ~
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