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Ace P.21.8 Home Comforts Ltd deals in three products, Ace, Nice, and Grace and these are sold directly through salesmen in three zones, Prime, Extension,
Ace P.21.8 Home Comforts Ltd deals in three products, Ace, Nice, and Grace and these are sold directly through salesmen in three zones, Prime, Extension, and Outreach. The responsibility for sales promotion rests with the headquarters and so does the overall control of distribution and sales. Cost of sales as per cent of sales are: Ace, 85; Nice, 80; Grace, 75. Details of sales and selling and distribution expenses for the year are as follows: Zones Products Sales Selling and distribution expenses allocated direct Prime zone Ace 29,00,000 263,990 Nice 9,00.000 84,465 Grace 4,50,000 47.160 22.50.000 1.95,615 Extension zone 6,75,000 46,710 Nice 4,50,000 47.700 Grace 2.25,000 23,940 13.50,000 1,18,350 Outreach zone Ace 2.25.000 18,900 Nice 1.80.000 15,165 Grace 4.95.000 66.375 9,00,000 1.00.440 Selling and distribution expenses at headquarters are as follows: Office expenses 294,500 Advertisement 1,35,000 Other expenses 1,21,500 Advertisement costs are allocated to zones and products on the basis of sales. Office expenses and other expenses are apportioned equally to the zones or the products, while computing the profit or loss for the zones or the products, as the case may be. j72 Prepare a comparative profit and loss statement, presenting zonal performance as distinct from product performance
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