using relevant costs provided above, determine the profitabilty for each of happy chips business Segments. Labeling costs are an additional $.06 per unit and the machine has an annual lease cost of $40,000.00

Retail Accounts:	Grocery	Drug	Mass Merchandise
Unit Sales	3,000,000	450,000	500,000
Trade Price	$2.30	$2.10	$1.50
Revenue	$6,900,000	$945,000	$750,000
COGS/unit	$1.26	$1.26	$1.26
Unit Sales/segment	3,000,000	450,000	500,000
Labeling Cost	n/a	n/a	$ *
COGS/segment	$3,780,000	$	$
Net Margin	$3,120,000	$	$
Controllable Fixed Costs
Stocking Cost	$520,000	$ **	$ **
Delivery Cost	$572,000	$ **	$ **
Total Controllable Fixed Costs:	$1,092,000	$	$
Profit/segment	$2,028,000	$	$

Cost Category/Segment	Grocery 250 loc, 2 del/wk	Drug 140 loc, 1 del/wk	Mass Merchandise 6 loc, 3 del/wk
Stocking Cost ($/Delivery)	$20	$18	$30
Delivery Cost ($/Delivery)	$22	$22	$30

**Stocking Cost and Delivery Cost for each segment is the product of:

Cost/delivery deliveries/week 52 weeks number of retail locations served

Grocerys Stocking Cost example: $20 x 2 dels/wk x 52 wks x 250 locations = $520,000

Grocerys Delivery Cost example: $22 x 2 dels/wk x 52 wks x 250 locations = $572,000