Almarai Company is a wholesale distributor of dairy products in Saudi Arabia. the company sells its products throughout the GCC countries include (Saudi Arabia, Qatar, and UAE). Unfortunately, the company's profits have been declining, which has caused considerable concerns to the management. To help understand the condition of the company, Mr. Salim Albadr, the managing director of the company has requested that the monthly income statement to be segmented by sales country. Accordingly, Miss. Reem Aldosari, the managerial accountant, has prepared the following statement for March 2017, the most recent month. Sales country Saudi Arabic Qatar UAE Sales 240000 QR 640000 QR 560000 QR Country expenses (Traceable) : Cost of goods sold 74400 192000 252000 Salaries 43200 44800 89600 Insurance 7200 12800 11200 Advertising 84000 192000 196000 Depreciation 16800 25600 22400 Shipping 12000 25600 33600 Total Territorial expenses 237600 492800 604800 Territorial income (loss) before corporate Expenses 2400 147200 -44800 Corporate expenses : advertising (general) 12000 32000 28000 General administrative 16000 16000 16000 Total corporate expenses: 28000 48000 44000 Net operating income -25600 99200 -88800 The company consider the Cost of goods sold and shipping expenses are both variable; other costs are all fixed. Almarai produces dairy at its farms in Alkharg city in KSA, and it distributes its products to the three countries listed above. Each of the three sales countries has its own manager and sales staff. The dairy products vary widely in profitability; some have a high margin and some have a low margin. Required: 1- List any disadvantages or weaknesses of the statement format illustrated above. (1 Mark) 2. Prepare a new-segmented contribution format of income statement for March 2017. Show the data for each country as well as the Total column. In addition, for the company as a whole and for each sales country, show each item on the segmented income statement as a percent of sales. (3 Marks) 3. Analyze the statement that you prepare in (2) above. What points that might help to improve the company's performance would you bring to management's attention. (1 Mark) 4. If the company has allocated the total corporate expenses on the basis of advertising show times, and you know that the show times was as follows: Almarai Branches Advertising show times per geographic segment Saudi Arabia 30 Minutes Qatar 20 Minutes United Arab Emirates 10 Minutes (2 Marks)