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Hayeraft Inc. has three customer segments; (a) small, (b) medium and (large). The following information is provided: (a) small segment - Revenue at list price
Hayeraft Inc. has three customer segments; (a) small, (b) medium and (large). The following information is provided: (a) small segment - Revenue at list price $10M, Discounts from list price $0.5M, Cost of good sold $6.8M, Delivery and Ordering costs $0.7M. (b) medium segment - Revenue at list price $12M, Discounts from list price $0.7M, Cost of good sold $7.5M, Delivery and Ordering costs $0.6M. (c) large segment - Revenue at list price $15M, Discounts from list price $1.25M, Cost of good sold $9M, Delivery and Ordering costs $1.05M. Additional information: - Distribution costs are $1.2M distributed in the proportion of 3:4:5 for small, medium and large respectively - Corporate sustaining costs are $0.8M in the proportion of 1:3:4 for small, medium and large respectively. What is the profit or loss of the large segment using the customer cost hierarchy report
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