q1

The SnackCom Company manufactures three types of snacks - popcorn, corn nuts and corn chips. Data on sales and expenses for the past quarter follow: Note 1: Currently allocated on the basis of sales dollars. These are costs incurred to run the administrative offices. These costs vill exist regardless of which product lines are offered. Management is concerned that not all product lines are profitable and wants a recommendation as to whether or not any of he lines should be discontinued. Part 1: Restate the income statement using proper segmented income format, assuming all product lines are kept (13 Required: markel. Oart 2. Falmulata the cadment maroin nercentage for each product line Using your answers to part 1 and part 2, what is the most profitable segment? This must be in your own words and question data. HOW did you determine which is the most profitable segment? (2 marks) * As a reminder, this is a closed book exam. *