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Hazlett & Family is organized into two geographic markets Northern and Southern. The company makes an off - road vehicle for recreation and agricultural use.
Hazlett & Family is organized into two geographic markets Northern and Southern. The company makes an offroad vehicle for recreation and agricultural use. The vehicle is sold in three models, depending on the power and options. The three models, from least expensive to most expensive, are the HL HLX and HLXS The company's financial staff has prepared the following forecasted income statement for the upcoming fiscal year in thousands of dollars:
Management has expressed special concern with the Southern market because of the extremely poor return on sales. This market was entered a year ago because it seemed like the best opportunity for growth. Hazlett & Family knew that it would take some time to build profitability in the market, but there has been no noticeable change in the low returns over time.
The financial staff has also prepared productline information to help the managers of the company decide whether to leave the Southern market.
Sales revenue by market and product are as follows in thousands of dollars:
tableNorthern,SouthernHL$$
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