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E19.27 Drop product line: retailer LO19.7 George Street Deli's owner is disturbed by the poor profit performance of his gelato bar. He has prepared the
E19.27 Drop product line: retailer LO19.7 George Street Deli's owner is disturbed by the poor profit performance of his gelato bar. He has prepared the following profit analysis: Sales $135 000 Less Cost of food 60 000 Gross margin $ 75 000 Less Operating expenses: Wages of counter staff $36000 Paper products (e.g. serviettes) 12000 Utilities (allocated) 8 700 Depreciation of counter equipment and furnishings 7 500 Depreciation of building (allocated) 12000 Deli manager's salary (allocated) 9000 Total expenses 85 200 Loss on gelato bar $ (10200) Required: 1. Evaluate the above analysis that has been prepared by the manager. 2. Provide a correct analysis and assess whether or not the gelato bar should be continued
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