Problem-2: i) Bovine Company, a wholesale distributor of DVDs, has been experiencing losses for some time, as shown by most recent monthly income statement below: Sales Less: Variable Expense Contribution Margin Less: Fixed Expense Net Operating Loss Tk. 1,500,000 (610,000) 890,000 (925,000) (35,000) In an effort to isolate the problem, the president has asked for an income statement segmented by geographic market. Accordingly, the accounting department has developed the following data: Items Sales Geographic Market East Tk. 400,000 Central 600.000 West 500,000 Variable expense (as percentage of sales) 50% 35% 40% Traceable fixed expense 220,000 350,000 250,000 Required: Prepare an income statement segmented by geographic market, as desired by the president. Page 1 of 2 ii) Handy Leather Inc. produces several products from processing 1 ton of raw leather. Material and processing cost total is Taka 90,000 per ton, one third of which is allocated to product 'A'. 200 units of product 'A' are produced from each ton of leather. The units can be sold at the spilt off point for 300 each, or processed further at an addition variable cost of 60 per unit. The further processing also requires additional fixed cost of Taka 5,000. The final product can be sold at Taka 390 per unit. Required: Should product 'A' be processed further or sold at split of point? Show your calculations. Problem-2: i) Bovine Company, a wholesale distributor of DVDs, has been experiencing losses for some time, as shown by most recent monthly income statement below: Sales Less: Variable Expense Contribution Margin Less: Fixed Expense Net Operating Loss Tk. 1,500,000 (610,000) 890,000 (925,000) (35,000) In an effort to isolate the problem, the president has asked for an income statement segmented by geographic market. Accordingly, the accounting department has developed the following data: Items Sales Geographic Market East Tk. 400,000 Central 600.000 West 500,000 Variable expense (as percentage of sales) 50% 35% 40% Traceable fixed expense 220,000 350,000 250,000 Required: Prepare an income statement segmented by geographic market, as desired by the president. Page 1 of 2