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The following information is from Dave s Sporting Goods. Dave s is a Midwest sporting goods store with three regional stores. The August income statement
The following information is from Daves Sporting Goods. Daves is a Midwest sporting goods store with three regional stores. The August income statement for all stores is shown.Daves Sporting Goods, Income Statement, Month Ending August for Nebraska, Iowa, and Illinois, respectively: Sales, $ $ $; Cost of goods sold, $ $ $; Gross profit, $ $ $; Expenses: Selling expenses, $ $ $; Wages expense, $ $ $; Costs allocated from corporate, $ $ $; Total expenses, $ $ $; Operating income loss $$ $
Comment on the operating income results for each store.
Now assume the costs allocated from corporate is an uncontrollable cost for each store. How does this change your assessment of each store? The course with the highest revenues had the highest net income.
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