Unfocused Books is a discount retail bookshop that has three
Unfocused Books is a discount retail bookshop that has three departments: fiction, non-fiction and children?s books. Sales and cost of sales for each department are shown below. In addition, each department has its own fixed costs for staffing and takes a one-third share of rental and management costs for the Bookshop as a whole.,
Fiction Non-Fiction Children?s,
Sales 250,000 100,000 75,000,
Cost of sales 45% 50% 55%,
Departmental costs 50,000 35,000 35,000,
Shared fixed costs 30,000 30,000 30,000,
Total 87,500 profit $5,000 profit -$11,250 profit,
What is the profitability of Unfocused Books? three departments and what recommendations would you make to the owners?,
This question was answered on: Dec 18, 2020
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