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Please answer Question 3 and 4 only Case 2 (Segmental Reporting): Qdairy Company is a wholesale distributor of dairy products in Qatar. The company sells
Please answer Question 3 and 4 only
Case 2 (Segmental Reporting): Qdairy Company is a wholesale distributor of dairy products in Qatar. The company sells its products throughout three Qatar regions (Al-Khor, Doha, and Al-Wakrah). 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, the managing director of the company has requested that the monthly income statement be segmented by sales region. Accordingly, Miss. Sara, the managerial accountant, has prepared the following income statement for March 2022. The company considers the cost of goods sold and shipping expenses as a variable; all other costs are fixed. Qdairy produces dairy at its farms in Al-Khor city in Qatar, and it distributes its products to the three regions listed above. The company assigns a manager and some sales staff to each of the three regions. Dairy products vary widely in profitability; some have a high margin, and some have a low margin. After reviewing the information mentioned above, you are required to discuss and solve, with your group members, the following questions: (Use Excel for calculation requirements)(Total project marks: 100 and will be converted to 5 marks) (Please use chapter 6 techniques/methods ONLY) 1- List any disadvantages or weaknesses of the income statement prepared by Miss Sara. (15 marks) 2. Prepare a segmented income statement for March 2022. Show the data for each country and the "Total" column. (30 marks) 3. Analyse the statement you prepared in (2) above. Which of the three segment (s) is not doing well? and (5 marks) Propose some action(s) that the company can take to improve the segment(s) performance? (5 marks) 4. A. Prepare a segmented income statement, assuming the company has allocated the total corporate expenses based on the following advertising show times: (30 marks) B. Do you believe that the decision to allocate the corporate costs based on geographic segments a wise decision? Why? (15 marks) Q dairy company march 2022 Case 2 (Segmental Reporting): Qdairy Company is a wholesale distributor of dairy products in Qatar. The company sells its products throughout three Qatar regions (Al-Khor, Doha, and Al-Wakrah). 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, the managing director of the company has requested that the monthly income statement be segmented by sales region. Accordingly, Miss. Sara, the managerial accountant, has prepared the following income statement for March 2022. The company considers the cost of goods sold and shipping expenses as a variable; all other costs are fixed. Qdairy produces dairy at its farms in Al-Khor city in Qatar, and it distributes its products to the three regions listed above. The company assigns a manager and some sales staff to each of the three regions. Dairy products vary widely in profitability; some have a high margin, and some have a low margin. After reviewing the information mentioned above, you are required to discuss and solve, with your group members, the following questions: (Use Excel for calculation requirements)(Total project marks: 100 and will be converted to 5 marks) (Please use chapter 6 techniques/methods ONLY) 1- List any disadvantages or weaknesses of the income statement prepared by Miss Sara. (15 marks) 2. Prepare a segmented income statement for March 2022. Show the data for each country and the "Total" column. (30 marks) 3. Analyse the statement you prepared in (2) above. Which of the three segment (s) is not doing well? and (5 marks) Propose some action(s) that the company can take to improve the segment(s) performance? (5 marks) 4. A. Prepare a segmented income statement, assuming the company has allocated the total corporate expenses based on the following advertising show times: (30 marks) B. Do you believe that the decision to allocate the corporate costs based on geographic segments a wise decision? Why? (15 marks) Q dairy company march 2022Step by Step Solution
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