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ZAPPY is a manufacturer of hand-held game cartridges. It divides its market into three main market segments: the Americas, Europe, and Asia. Financial information for

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ZAPPY is a manufacturer of hand-held game cartridges. It divides its market into three main market segments: the Americas, Europe, and Asia. Financial information for this fiscal year is presented below. Note that the direct fixed costs refer to entry costs particular to each market, and these could be eliminated if ZAPPY exits a market. In addition, the home-office costs have been allocated to the market segments on the basis of division revenue. Next year, ZAPPY expects sales to be flat in the Americas and in Europe but expects 20 percent growth in Asia. ZAPPY is a manufacturer of hand-held game cartridges. It divides its market into three main market segments: the Americas, Europe, and Asia. Financial information for this fiscal year is presented below. Note that the direct fixed costs refer to entry costs particular to each market, and these could be eliminated if ZAPPY exits a market. In addition, the home-office costs have been allocated to the market segments on the basis of division revenue. Next year, ZAPPY expects sales to be flat in the Americas and in Europe but expects 20 percent growth in Asia

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